Form 4684
Report casualty and theft losses on Form 4684, Casualties and Thefts PDF. Use Section A for personal-use property and Section B for business or income-producing property.
Which one of the following is an example of a casualty and/or theft loss?
A casualty and theft loss is one caused by a hurricane, earthquake, fire, flood, theft or similar event that is sudden, unexpected or unusual. You can deduct a portion of personal casualty or theft losses as an itemized deduction.
When to use form 4684 for casualties and thefts?
In most cases, this form only applies to personal losses, not for casualties and thefts related to the business property. Once you have determined that your casualties or thefts qualify for a deduction, complete Form 4684 and either attach it to your return or to an amended return for a past claim.
How to report casualty and theft loss on tax return?
Use the instructions on Form 4684 to report gains and losses from casualties and thefts. Attach Form 4684 to your tax return. To figure your deduction for a casualty or theft loss, first figure the amount of your loss. Then follow these instructions to fill out Form 4684: Figure your adjusted basis in the property before the casualty or theft.
When do I need to file Form 4684?
Taxpayers reporting gains or losses from a casualty or theft should file Form 4684. Homeowners who received notification of the need to tear down or move a structure after a federally declared disaster may use Form 4684 to claim a loss. These individuals may claim the difference in the home’s value, pre- and post-event.
Do you have to file Form 4684 if you live in a disaster area?
Taxpayers who live in federally declared disaster areas do not need to itemize deductions to file Form 4684. Taxpayers cannot use Form 4684 to deduct expenses related to personal injuries. In most cases, this form only applies to personal losses, not for casualties and thefts related to the business property.
