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2011 Federal Tax Form 1040

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2011 Federal Tax Form 1040

2011 federal tax form 1040 28. 2011 federal tax form 1040   Deducciones Misceláneas Table of Contents Qué Hay de Nuevo Introduction Useful Items - You may want to see: Deducciones Sujetas al Límite del 2%Gastos del Empleado no Reembolsados (Línea 21) Costos de la Preparación de la Declaración de Impuestos (Línea 22) Otros Gastos (Línea 23) Deducciones no Sujetas al Límite del 2%Lista de Deducciones Gastos no DeduciblesLista de Gastos no Deducibles Qué Hay de Nuevo Tarifa estándar por milla. 2011 federal tax form 1040  La tarifa para uso comercial de un vehículo en 2013 es 56½ centavos por milla. 2011 federal tax form 1040 Introduction Este capítulo explica qué gastos pueden declararse como deducciones detalladas misceláneas en el Anexo A (Formulario 1040). 2011 federal tax form 1040 Usted tendrá que reducir por el 2% de su ingreso bruto ajustado el total de la mayoría de las deducciones misceláneas detalladas. 2011 federal tax form 1040 Este capítulo trata los siguientes temas: Deducciones sujetas al límite del 2%. 2011 federal tax form 1040 Deducciones no sujetas al límite del 2%. 2011 federal tax form 1040 Gastos que no se pueden deducir. 2011 federal tax form 1040 Tiene que guardar documentación para verificar sus deducciones. 2011 federal tax form 1040 Debe guardar sus recibos, cheques cancelados, cheques sustitutivos, estados de cuentas financieras y otros documentos comprobantes. 2011 federal tax form 1040 Si desea obtener más información sobre el mantenimiento de documentación, obtenga la Publicación 552, Recordkeeping for Individuals (Mantenimiento de documentación para personas físicas), en inglés. 2011 federal tax form 1040 Useful Items - You may want to see: Publicación 463 Travel, Entertainment, Gift, and Car Expenses (Gastos de viaje, entretenimiento, regalos y automóvil), en inglés 525 Taxable and Nontaxable Income (El ingreso tributable y no tributable), en inglés 529 Miscellaneous Deductions (Deducciones misceláneas), en inglés 535 Business Expenses (Gastos de negocios), en inglés 587 Business Use of Your Home (Including Use by Daycare Providers) (Uso de su domicilio para propósitos comerciales (incluyendo el uso por proveedores de cuidado infantil)), en inglés 946 How To Depreciate Property (Cómo depreciar la propiedad), en inglés Formulario (e Instrucciones) Anexo A (Formulario 1040) Itemized Deductions (Deducciones detalladas), en inglés 2106 Employee Business Expenses (Gastos de negocio del empleado), en inglés 2106-EZ Unreimbursed Employee Business Expenses (Gastos de negocio del empleado no reembolsados), en inglés Deducciones Sujetas al Límite del 2% Usted puede deducir ciertos gastos como deducciones detalladas misceláneas en el Anexo A (Formulario 1040). 2011 federal tax form 1040 Puede deducir la parte de sus gastos que supere al 2% de su ingreso bruto ajustado. 2011 federal tax form 1040 Se calcula la deducción en el Anexo A; restando el 2% de sus ingresos brutos ajustados del total de estos gastos. 2011 federal tax form 1040 Su ingreso bruto ajustado es la cifra escrita en la línea 38 del Formulario 1040. 2011 federal tax form 1040 Por lo general, se aplica el límite del 2% después de aplicar los demás límites de deducciones. 2011 federal tax form 1040 Por ejemplo, el límite del 50% (o del 80%) sobre comidas y entretenimiento relacionados con los negocios (explicado en el capítulo 26) se aplica antes de aplicar el límite del 2%. 2011 federal tax form 1040 Las deducciones sujetas al límite del 2% se explican aquí de acuerdo con las tres categorías en las cuales los declara en el Anexo A (Formulario 1040): Gastos del empleado no reembolsados (línea 21). 2011 federal tax form 1040 Costos de la preparación de la declaración de impuestos (línea 22). 2011 federal tax form 1040 Otros gastos (línea 23). 2011 federal tax form 1040 Gastos del Empleado no Reembolsados (Línea 21) Generalmente, uno puede deducir en la línea 21 del Anexo A (Formulario 1040) los gastos del empleado no reembolsados que: Pague o en los que incurra durante el año tributario, Sean necesarios para llevar a cabo su oficio o negocio como empleado y Sean ordinarios y necesarios. 2011 federal tax form 1040 Un gasto es “ordinario” si es común y aceptado en su oficio, negocio o profesión. 2011 federal tax form 1040 Un gasto es necesario si es adecuado y útil para su negocio. 2011 federal tax form 1040 Un gasto no tiene que ser obligatorio para considerarse necesario. 2011 federal tax form 1040 A continuación se indican algunos ejemplos de gastos del empleado no reembolsados. 2011 federal tax form 1040 Después de la lista encontrará otros ejemplos de gastos del empleado no reembolsados. 2011 federal tax form 1040 Deudas incobrables incurridas por un empleado en la ejecución de su trabajo. 2011 federal tax form 1040 Educación relacionada con el trabajo. 2011 federal tax form 1040 (Vea el capítulo 27). 2011 federal tax form 1040 Honorarios legales relacionados con su trabajo. 2011 federal tax form 1040 Licencias y tarifas reglamentarias. 2011 federal tax form 1040 Primas de seguro contra negligencia profesional. 2011 federal tax form 1040 Exámenes médicos requeridos por un empleador. 2011 federal tax form 1040 Impuestos sobre una profesión u ocupación. 2011 federal tax form 1040 Pasaporte para un viaje de negocios. 2011 federal tax form 1040 Suscripciones a revistas profesionales y de industria relacionadas con su trabajo. 2011 federal tax form 1040 Viajes, transporte, entretenimiento y regalos relacionados con su trabajo. 2011 federal tax form 1040 (Vea el capítulo 26). 2011 federal tax form 1040 Seguro de Responsabilidad Comercial Puede deducir las primas de seguro que pagó para protegerse contra responsabilidad personal por actos ilícitos en el trabajo. 2011 federal tax form 1040 Daños por Incumplimiento de Contrato de Empleo Si deja de cumplir con un contrato de empleo, puede deducir los daños que pague a su antiguo empleador que sean atribuibles a la paga que había recibido de ese empleador. 2011 federal tax form 1040 Depreciación de Computadoras Puede declarar una deducción por depreciación de una computadora que usted usa en el trabajo como empleado si su uso: Es para conveniencia de su empleador y Se requiere como una condición de su empleo. 2011 federal tax form 1040 Para obtener información acerca de las reglas y excepciones a las reglas que afectan las deducciones permitidas por una computadora en su casa, vea la Publicación 529, en inglés. 2011 federal tax form 1040 Cuotas a Cámaras de Comercio y Asociaciones Profesionales Es posible que pueda deducir cuotas pagadas a organizaciones profesionales (como asociaciones de abogados y asociaciones médicas) y a cámaras de comercio y organizaciones parecidas, si la afiliación le ayuda a realizar los deberes de su trabajo. 2011 federal tax form 1040 Estas organizaciones incluyen: Juntas comerciales, Asociaciones comerciales, Organizaciones cívicas o de servicios públicos, Juntas de bienes raíces y Asociaciones profesionales. 2011 federal tax form 1040 Actividades políticas y de cabildeo. 2011 federal tax form 1040   Quizás no pueda deducir la parte de sus cuotas destinada a ciertas actividades políticas y de cabildeo. 2011 federal tax form 1040 Vea Cuotas usadas para cabildeo bajo Gastos no Deducibles, más adelante. 2011 federal tax form 1040 Gastos del Educador Si en el año 2013 usted era un educador que reunía los requisitos, usted puede deducir hasta $250 de gastos calificados que usted pagó en el año 2013 como ajuste a los ingresos brutos, en la línea 23 del Formulario 1040, en vez de una deducción detallada miscelánea. 2011 federal tax form 1040 Si presenta el Formluario 1040A, usted podría deducir estos gastos en la línea 16. 2011 federal tax form 1040 Si usted y su cónyuge están presentando una declaración conjunta y ambos fueron educadores calificados, la deducción máxima es $500. 2011 federal tax form 1040 No obstante, ninguno puede deducir más de $250 como gastos calificados. 2011 federal tax form 1040 Oficina en el Domicilio Si de manera habitual, usted usa una parte de su domicilio exclusivamente para propósitos comerciales, tal vez pueda deducir una parte de los gastos de operación y depreciación de su domicilio. 2011 federal tax form 1040 Puede reclamar esta deducción por el uso comercial de una parte de su domicilio sólo si utiliza esa parte habitual y exclusivamente: Como el lugar principal de negocios para algún oficio o negocio, Como lugar para reunirse o recibir a sus pacientes o clientes en el transcurso normal de su oficio o negocio o En el caso de un edificio separado no conectado a su domicilio, si lo usa para fines de su oficio o negocio. 2011 federal tax form 1040 Dicho uso comercial, habitual y exclusivo tiene que ser para conveniencia de su empleador y no sólo adecuado y útil para su propio trabajo. 2011 federal tax form 1040 Vea la Publicación 587, en inglés, para obtener información más detallada y una hoja de trabajo. 2011 federal tax form 1040 Gastos Relacionados con la Búsqueda de Empleo Puede deducir determinados gastos que tenga al buscar un nuevo trabajo en su profesión actual, incluso si no lo consigue. 2011 federal tax form 1040 Pero no puede deducir estos gastos si: Busca trabajo en una nueva profesión, Hubo una pausa considerable entre el término de su último trabajo y la búsqueda de un trabajo nuevo o Busca trabajo por primera vez. 2011 federal tax form 1040 Cuotas de agencias de colocación y empleo. 2011 federal tax form 1040   Puede deducir cuotas que pague a agencias de colocación y empleo que usa como parte de su búsqueda de trabajo en su profesión actual. 2011 federal tax form 1040 Si el empleador le devuelve dinero. 2011 federal tax form 1040   Si, en un año posterior, su empleador le devuelve el dinero de las cuotas de agencias de empleo, usted tiene que incluir la cantidad que reciba en sus ingresos brutos hasta que llegue al total del beneficio tributario que recibió en el año anterior. 2011 federal tax form 1040 (Vea Recuperaciones de Fondos en el capítulo 12). 2011 federal tax form 1040 Si el empleador le paga a la agencia de empleo. 2011 federal tax form 1040   Si su empleador paga las cuotas directamente a la agencia de empleo y usted no es responsable de pagarlas, no puede incluirlas en sus ingresos brutos. 2011 federal tax form 1040 Currículum vitae. 2011 federal tax form 1040   Puede deducir lo que gaste para preparar o enviar por correo copias de un currículum vitae a posibles empleadores siempre que busca un trabajo nuevo en su profesión actual. 2011 federal tax form 1040 Gastos de viaje y transporte. 2011 federal tax form 1040   Si viaja a algún lugar y durante su estadía busca un trabajo nuevo en su profesión actual, tal vez pueda deducir los gastos de viaje de ida y vuelta al lugar. 2011 federal tax form 1040 Puede deducir los gastos de viaje si el viaje se realizó principalmente para buscar un trabajo nuevo. 2011 federal tax form 1040 Es importante saber qué parte del tiempo dedique a actividades personales y qué parte del tiempo dedique a buscar trabajo para determinar si el viaje se hizo principalmente por motivos personales o para buscar un trabajo nuevo. 2011 federal tax form 1040   Incluso si no puede deducir los gastos de viaje de ida y vuelta al lugar, puede deducir los gastos de buscar trabajo nuevo en su profesión actual que incurra mientras se encuentra en dicho lugar. 2011 federal tax form 1040   Puede optar por utilizar la tarifa estándar por milla para calcular los gastos de automóvil. 2011 federal tax form 1040 La tarifa correspondiente al año 2013 para uso comercial de un vehículo es 56½ centavos por milla. 2011 federal tax form 1040 Vea el capítulo 26 para más información. 2011 federal tax form 1040 Licencias y Tarifas Reglamentarias Puede deducir la cantidad que pague cada año a gobiernos estatales o locales por licencias y tarifas reglamentarias para su oficio, negocio o profesión. 2011 federal tax form 1040 Impuestos Incidentales al Trabajo Puede deducir un impuesto incidental al trabajo que una localidad le cobre a una tarifa fija por el privilegio de trabajar o realizar un negocio dentro de dicha localidad. 2011 federal tax form 1040 Si usted es empleado, puede reclamar impuestos incidentales al trabajo sólo como deducción miscelánea sujeta al límite del 2%; no puede reclamarlos como una deducción en otro lugar de su declaración. 2011 federal tax form 1040 Reintegro de un Pago de Asistencia Un “pago de asistencia” es aquel pago que se recibe de acuerdo con un plan del empleador para ayudar a los empleados que pierden su empleo debido a la falta de trabajo. 2011 federal tax form 1040 Si usted reintegra un pago de asistencia de suma global que recibió y había incluido en sus ingresos en un año anterior, puede deducir dicho reintegro. 2011 federal tax form 1040 Gastos de Investigación de un Profesor Universitario Si es profesor universitario, puede deducir los gastos de investigación, incluidos gastos de viaje y gastos en los que incurra por enseñar, dar conferencias o escribir y publicar temas relacionados directamente con su labor de enseñanza. 2011 federal tax form 1040 Tiene que haber comenzado la investigación como parte de los deberes de enseñanza que se esperan de un profesor y sin expectativas lucrativas además del sueldo. 2011 federal tax form 1040 No obstante, no puede deducir los costos de viajes como una forma de educación. 2011 federal tax form 1040 Herramientas Utilizadas en su Trabajo Por lo general, puede deducir los gastos por herramientas que usa en su trabajo si éstas se desgastan y se deshace de ellas dentro de 1 año después de la fecha de compra. 2011 federal tax form 1040 Puede depreciar el costo de las herramientas cuya vida sea mayor del año tributario. 2011 federal tax form 1040 Para obtener más información acerca de la depreciación, vea la Publicación 946, en inglés. 2011 federal tax form 1040 Cuotas y Gastos de Afiliación a un Sindicato Puede deducir cuotas y tarifas iniciales que pague para afiliarse a un sindicato. 2011 federal tax form 1040 También puede deducir contribuciones destinadas a los beneficios para miembros del sindicato desempleados. 2011 federal tax form 1040 No obstante, no puede deducir la parte de las contribuciones o aportaciones destinadas a los fondos para el pago de beneficios por enfermedad, accidente o fallecimiento. 2011 federal tax form 1040 Asimismo, no puede deducir aportaciones a un fondo de pensiones, incluso si el sindicato le exige que realice las aportaciones. 2011 federal tax form 1040 Tal vez no pueda deducir las cantidades que pague al sindicato si éstas están relacionadas con determinadas actividades políticas o de cabildeo. 2011 federal tax form 1040 Vea Gastos de Cabildeo bajo Gastos no Deducibles, más adelante. 2011 federal tax form 1040 Ropa de Trabajo y Uniformes Puede deducir el costo y mantenimiento de la ropa de trabajo si se cumplen los dos requisitos siguientes: Está obligado a usarlas como condición de empleo. 2011 federal tax form 1040 La ropa no es adecuada para uso cotidiano. 2011 federal tax form 1040 No es suficiente usar ropa distintiva. 2011 federal tax form 1040 Su empleador tiene que requerir específicamente esa ropa. 2011 federal tax form 1040 Tampoco es suficiente que, de hecho, no use su ropa de trabajo en otro lugar. 2011 federal tax form 1040 La ropa no puede servir para reemplazar su ropa habitual. 2011 federal tax form 1040 Algunos ejemplos de trabajadores que tal vez puedan deducir el costo y mantenimiento de la ropa de trabajo son: personas que realicen entregas, bomberos, proveedores de servicios de la salud, agentes encargados de mantener el orden público, carteros, atletas profesionales y trabajadores del transporte (aéreo, ferroviario, terrestre, etc. 2011 federal tax form 1040 ). 2011 federal tax form 1040 Los músicos y artistas pueden deducir el costo de la ropa y los accesorios de teatro si no son adecuados para su uso cotidiano. 2011 federal tax form 1040 Sin embargo, la ropa de trabajo que conste de un gorro blanco, camisa blanca o chaqueta blanca, overol (de pintor) blanco y zapatos de trabajo estándar, como la que debe usar un pintor en su trabajo por exigencia de su sindicato, no es distintiva en cuanto a carácter ni a la naturaleza del uniforme. 2011 federal tax form 1040 Igualmente, los costos de compra y mantenimiento de ropa de trabajo azul usada por un soldador a solicitud de un capataz no son deducibles. 2011 federal tax form 1040 Ropa de protección. 2011 federal tax form 1040   Puede deducir el costo de la ropa de protección obligatoria en su trabajo, como zapatos o botas de seguridad, anteojos de seguridad, cascos y guantes de trabajo. 2011 federal tax form 1040   Algunos ejemplos de trabajadores a los que quizás se les exija usar artículos de seguridad son: carpinteros, trabajadores del cemento, trabajadores de productos químicos, electricistas, tripulación de barcos de pesca, maquinistas, trabajadores de campos petrolíferos, fontaneros, técnicos en tuberías y conductores de camiones. 2011 federal tax form 1040 Uniformes militares. 2011 federal tax form 1040   Generalmente, no puede deducir el costo de uniformes si está en servicio activo a tiempo completo en las Fuerzas Armadas. 2011 federal tax form 1040 Sin embargo, si es miembro en reserva de las Fuerzas Armadas, puede deducir el costo no reembolsado de su uniforme si los reglamentos militares exigen que su uso se limite a cuando esté en servicio como miembro en reserva. 2011 federal tax form 1040 Al calcular la deducción, tiene que deducir del costo la asignación no gravable que reciba por estos gastos. 2011 federal tax form 1040   Si las reglas militares locales no le permiten que use uniformes de faena cuando no esté de servicio, puede deducir la cantidad por la cual el costo de compra y mantenimiento de estos uniformes sea superior a la asignación por uniforme que reciba. 2011 federal tax form 1040   Puede deducir el costo de sus uniformes si es miembro del personal o profesorado civil de una escuela militar. 2011 federal tax form 1040 Costos de la Preparación de la Declaración de Impuestos (Línea 22) Generalmente, puede deducir los costos de la preparación de la declaración de impuestos en el año en el que los paga. 2011 federal tax form 1040 De este modo, en la declaración de impuestos de 2013, puede deducir los costos pagados en el año 2013 por la preparación de la declaración del año 2012. 2011 federal tax form 1040 Estos costos incluyen el costo de los programas de software de preparación de impuestos y publicaciones tributarias. 2011 federal tax form 1040 También incluyen todo costo que haya pagado por la presentación electrónica de su declaración. 2011 federal tax form 1040 Otros Gastos (Línea 23) Puede deducir otros gastos determinados como deducciones detalladas misceláneas sujetas al límite del 2%. 2011 federal tax form 1040 En la línea 23 del Anexo A (Formulario 1040), puede deducir gastos que paga para: Generar o cobrar ingresos que se tienen que incluir en sus ingresos brutos, Administrar, conservar o mantener en buen estado propiedad cuya finalidad es generar un ingreso de estas características o Determinar, impugnar, pagar o solicitar un reembolso de algún impuesto. 2011 federal tax form 1040 Puede deducir gastos que pague para los fines indicados en las secciones (1) y (2) anteriores sólo si están razonable y estrechamente relacionados con estos fines. 2011 federal tax form 1040 Algunos de estos gastos se explican más adelante. 2011 federal tax form 1040 Si los gastos que pague generan ingresos que sólo sean parcialmente tributables, vea Gastos de Ingresos Exentos de Impuestos más adelante, bajo Gastos no Deducibles. 2011 federal tax form 1040 Cargos de Tasación Puede deducir cargos de tasación si los paga para calcular una pérdida por hecho fortuito o el valor justo de mercado de una propiedad donada. 2011 federal tax form 1040 Pérdidas por Hecho Fortuito y Robo Puede deducir una pérdida por hecho fortuito o robo como una deducción detallada miscelánea sujeta al límite del 2% si utilizaba la propiedad dañada o robada para realizar servicios como empleado. 2011 federal tax form 1040 Primero declare la pérdida en la Sección B del Formulario 4684, Casualties and Thefts (Hechos fortuitos y robos), en inglés. 2011 federal tax form 1040 Es posible que también tenga que incluir la pérdida en el Formulario 4797, Sales of Business Property (Ventas de propiedades de negocios), también en inglés, si es que está obligado por otras razones a presentar ese formulario. 2011 federal tax form 1040 Para calcular su deducción, sume todas las pérdidas por hecho fortuito o robo de este tipo de propiedad que se incluyan en las líneas 32 y 38b del Formulario 4684, o la línea 18a del Formulario 4797, ambos en inglés. 2011 federal tax form 1040 Para información sobre otras pérdidas por hecho fortuito o robo, vea el capítulo 25. 2011 federal tax form 1040 Apoyo Administrativo y Alquiler de Oficina Puede deducir gastos de oficina, (por ejemplo apoyo administrativo y alquiler), que usted incurre con respecto a sus inversiones y al cobro de los ingresos tributables generados por las mismas. 2011 federal tax form 1040 Cargos de Tramitación por el Uso de una Tarjeta de Crédito o Débito Puede deducir el cargo administrativo que le cobra el tramitador de la tarjeta de crédito por efectuar un pago del impuesto sobre los ingresos (inclusive pagos del impuesto estimado) con tarjeta de crédito o débito. 2011 federal tax form 1040 Dichos cargos son deducibles en el año en que se paguen. 2011 federal tax form 1040 Depreciación de Computadora de Uso Doméstico Puede deducir la depreciación de su computadora de uso doméstico si la utiliza para generar ingresos (por ejemplo, para administrar sus inversiones que generen ingresos tributables). 2011 federal tax form 1040 Por lo general, tiene que depreciar la computadora según el método uniforme durante el período de recuperación del Sistema Alternativo de Depreciación (ADS, por sus siglas en inglés). 2011 federal tax form 1040 Si trabaja como empleado y también utiliza la computadora en ese trabajo, vea la Publicación 946, en inglés. 2011 federal tax form 1040 Deducciones que le Sobran de un Caudal Hereditario Si las deducciones totales de un caudal hereditario en su año tributario anterior son superiores a su ingreso bruto de ese año, los beneficiarios que heredan la propiedad pueden deducir la cantidad que le sobró en exceso. 2011 federal tax form 1040 No incluya las deducciones por la exención personal del caudal hereditario y las donaciones con fines benéficos al calcular las deducciones totales del caudal hereditario. 2011 federal tax form 1040 Los beneficiarios pueden reclamar la deducción sólo para el año tributario en el que, o con el que, termina el caudal hereditario, sea el año final un año normal o un año tributario corto. 2011 federal tax form 1040 Para obtener más información, vea Termination of Estate (Terminación de un caudal hereditario) en la Publicación 559, Survivors, Executors, and Administrators (Sobrevivientes, albaceas y administradores), en inglés. 2011 federal tax form 1040 Cargos del Cobro de Intereses y Dividendos Puede deducir cargos que paga a un agente de bolsa, banco, fideicomisario o agente parecido por el cobro de los intereses de los bonos o dividendos de acciones tributables. 2011 federal tax form 1040 Sin embargo, no puede deducir un cargo que pague a un agente de bolsa para comprar bienes de inversión, como acciones o bonos. 2011 federal tax form 1040 Tiene que agregar el cargo al costo de los bienes. 2011 federal tax form 1040 No puede deducir el cargo que pague a un agente de bolsa para vender valores. 2011 federal tax form 1040 Puede usar el cargo sólo para calcular las pérdidas o ganancias de la venta. 2011 federal tax form 1040 Vea las Instrucciones del Formulario 8949, para obtener información sobre cómo declarar el cargo. 2011 federal tax form 1040 Gastos Relacionados con un Pasatiempo Por lo general, puede deducir gastos relacionados con un pasatiempo, pero sólo hasta la cantidad del ingreso generado por el mismo. 2011 federal tax form 1040 Un pasatiempo no es un negocio porque no se realiza para obtener un beneficio económico. 2011 federal tax form 1040 Consulte Actividad sin fines de lucro en el capítulo 12 bajo Otros Ingresos. 2011 federal tax form 1040 Deducciones Indirectas de Entidades que Traspasan los Atributos Tributarios Las entidades que traspasan los atributos tributarios incluyen sociedades colectivas, sociedades anónimas de tipo S y fondos mutuos que no se ofrecen al público. 2011 federal tax form 1040 Las deducciones de dichas entidades se traspasan a los socios o accionistas. 2011 federal tax form 1040 Los socios o accionistas pueden deducir su parte de las deducciones traspasadas para gastos de inversión como deducciones detalladas misceláneas sujetas al límite del 2%. 2011 federal tax form 1040 Ejemplo. 2011 federal tax form 1040 Usted es miembro de un club de inversiones formado exclusivamente para invertir en valores. 2011 federal tax form 1040 El club se considera una sociedad colectiva. 2011 federal tax form 1040 Los ingresos de la sociedad colectiva provienen exclusivamente de dividendos, intereses y ganancias tributables procedentes de la venta de valores. 2011 federal tax form 1040 En este caso, usted puede deducir su parte de los gastos de operación de la sociedad colectiva como deducciones detalladas misceláneas sujetas al límite del 2%. 2011 federal tax form 1040 No obstante, si el club de inversiones tiene inversiones que generan ingresos no tributables también, no puede deducir su parte de los gastos que generan ingresos no tributables. 2011 federal tax form 1040 Fondos mutuos de oferta pública. 2011 federal tax form 1040   Los fondos mutuos de oferta pública no traspasan deducciones por gastos de inversión a los accionistas. 2011 federal tax form 1040 Un fondo mutuo es “de oferta pública” si: Se comercializa continuamente en virtud de una oferta pública, Se cotiza habitualmente en un mercado bursátil de valores establecido o Están bajo la propiedad de al menos 500 personas en todo momento durante el año tributario. 2011 federal tax form 1040   El fondo mutuo de oferta pública le enviará un Formulario 1099-DIV, Dividends and Distributions (Dividendos y distribuciones), en inglés, o un formulario sustitutivo, que indique la cantidad neta del ingreso de dividendos (dividendos brutos menos gastos de inversión). 2011 federal tax form 1040 Esta cifra neta es la cantidad que declara como ingresos. 2011 federal tax form 1040 Usted no puede también deducir los gastos de inversión incurridos por fondos mutuos de oferta pública porque ya se incluyen como parte de la cantidad neta del ingreso de dividendos. 2011 federal tax form 1040 Declaraciones informativas. 2011 federal tax form 1040   Las entidades que traspasan los atributos tributarios deben enviarle declaraciones informativas. 2011 federal tax form 1040 Sociedades colectivas y de tipo S. 2011 federal tax form 1040   Estas entidades generan el Anexo K-1, el cual indica los conceptos y las cantidades que tiene que declarar y también identifica los anexos y las líneas de la declaración de impuestos que se deben usar. 2011 federal tax form 1040 Fondos mutuos que no son de oferta pública. 2011 federal tax form 1040   Estos fondos le enviarán un Formulario 1099-DIV, Dividends and Distributions (Dividendos y distribuciones), o un formulario sustitutivo, el cual indicará su parte de los ingresos brutos y los gastos de inversión. 2011 federal tax form 1040 Puede declarar los gastos sólo como una deducción detallada miscelánea sujeta al límite del 2%. 2011 federal tax form 1040 Cargos y Gastos Relacionados con la Inversión Puede deducir cargos relacionados con la inversión, custodia, administración de fideicomiso y otros gastos que pague por la administración de inversiones que generen ingresos tributables. 2011 federal tax form 1040 Gastos Legales Por lo general, puede deducir gastos legales en los que incurra al intentar generar o cobrar ingresos tributables o que pague en conexión con la determinación, cobro o reembolso de un impuesto. 2011 federal tax form 1040 También puede deducir gastos legales que: Estén relacionados con la realización o conservación de su trabajo, como los que pague para defenderse contra acusaciones penales que se levanten por las acciones de su oficio o negocio, Sean para asesoría tributaria relacionada con un divorcio, si la factura indica cuánto corresponde a la asesoría tributaria y se determina de una forma razonable o Sean para cobrar una pensión tributable para el cónyuge divorciado. 2011 federal tax form 1040 Puede deducir los gastos que incurrió para resolver problemas tributarios relacionados con las pérdidas o ganancias de un negocio (Anexo C o C-EZ), alquileres o regalías (Anexo E) o gastos e ingresos agrícolas (Anexo F) en el anexo apropiado, todos en inglés. 2011 federal tax form 1040 Debe deducir los gastos que incurrió para resolver problemas tributarios no comerciales en el Anexo A (Formulario 1040). 2011 federal tax form 1040 Vea Costos de la Preparación de la Declaración de Impuestos , anteriormente. 2011 federal tax form 1040 Pérdidas de Depósitos Para obtener información acerca de si puede deducir la pérdida de un depósito que usted hizo en una institución financiera que reúna los requisitos y cómo declarar la deducción si tiene derecho a ella, vea Pérdidas de Depósitos en el capítulo 25. 2011 federal tax form 1040 Reintegros de Ingresos Si tuvo que reintegrar una cantidad que incluyó como ingresos en un año anterior, es posible que pueda deducir dicha cantidad reintegrada. 2011 federal tax form 1040 Si la cantidad que tuvo que reintegrar era ingreso ordinario de $3,000 o menos, la deducción está sujeta al límite del 2%. 2011 federal tax form 1040 Si fue más de $3,000, vea Reintegros por la Reclamación de un Derecho bajo Deducciones no Sujetas al Límite del 2%, más adelante. 2011 federal tax form 1040 Reintegros de Beneficios del Seguro Social Para obtener información acerca de cómo deducir los reintegros de ciertos beneficios del Seguro Social, vea Reintegros Superiores a los Beneficios Brutos en el capítulo 11. 2011 federal tax form 1040 Alquiler de Caja de Seguridad Puede deducir el alquiler de una caja de seguridad si la utiliza para almacenar bonos y acciones que generen ingresos tributables o documentos y papeles relacionados con inversiones. 2011 federal tax form 1040 No puede deducir el alquiler si sólo utiliza la caja para guardar joyas, otras pertenencias personales o valores exentos de impuestos. 2011 federal tax form 1040 Cargos Administrativos de los Planes de Reinversión de Dividendos Puede deducir los cargos administrativos que pague como abonado a un plan de reinversión de dividendos. 2011 federal tax form 1040 Estos cargos administrativos incluyen pagos por: Poseer acciones adquiridas mediante un plan, Cobrar y reinvertir dividendos en efectivo, y Mantener documentación personal y proporcionar estados de cuenta detallados. 2011 federal tax form 1040 Honorarios por Administración de un Fideicomiso de Arreglos IRA Los honorarios de administración de un fideicomiso que se facturen por separado y que usted pague en relación con un arreglo de ahorros para la jubilación (IRA, por sus siglas en inglés) son deducibles (si son ordinarios y necesarios) como deducción detallada miscelánea sujeta al límite del 2%. 2011 federal tax form 1040 Para obtener más información acerca de los arreglos IRA, vea el capítulo 17. 2011 federal tax form 1040 Deducciones no Sujetas al Límite del 2% Puede deducir los artículos indicados a continuación como deducciones detalladas misceláneas. 2011 federal tax form 1040 No están sujetas al límite del 2%. 2011 federal tax form 1040 Declare estos artículos en la línea 28 del Anexo A del Formulario 1040. 2011 federal tax form 1040 Lista de Deducciones Se explica cada uno de los siguientes artículos en detalle después de la lista (excepto cuando se indica al contrario). 2011 federal tax form 1040 Prima amortizable de bonos tributables. 2011 federal tax form 1040 Pérdidas por hecho fortuito y robo de una propiedad que genera ingresos. 2011 federal tax form 1040 Impuesto federal sobre la herencia atribuible a los ingresos de un difunto. 2011 federal tax form 1040 Pérdidas de apuestas y juegos de azar hasta la cantidad de sus ganancias del juego. 2011 federal tax form 1040 Gastos del trabajo relacionados con los impedimentos de personas con incapacidades. 2011 federal tax form 1040 Pérdida por otras actividades anotadas en el recuadro 2 del Anexo K-1 del Formulario 1065-B. 2011 federal tax form 1040 Pérdidas por estafas de inversiones engañosas tipo Ponzi. 2011 federal tax form 1040 Vea, Pérdidas proveneintes de estafas de inversiones del tipo Ponzi (Ponzi schemes) , en el capítulo 25. 2011 federal tax form 1040 Reintegros de más de $3,000 por la reclamación de un derecho. 2011 federal tax form 1040 Inversión no recuperada en una anualidad. 2011 federal tax form 1040 Prima Amortizable de Bonos Tributables En general, si la cantidad que paga por un bono es superior a la cantidad de capital estipulado, el excedente corresponde a la prima de los bonos. 2011 federal tax form 1040 Puede optar por amortizar la prima de bonos tributables. 2011 federal tax form 1040 Por lo general, la amortización de la prima compensa los ingresos de intereses sobre el bono en lugar de ser una deducción diferente. 2011 federal tax form 1040 Parte de la prima de algunos bonos puede ser una deducción miscelánea no sujeta al límite del 2%. 2011 federal tax form 1040 Para obtener más información, vea Amortizable Premium on Taxable Bonds (Prima amortizable de bonos tributables) en la Publicación 529 y Bond Premium Amortization (Amortización de prima de bono) en el capítulo 3 de la Publicación 550, Investment Income and Expenses (Gastos e ingresos de inversión), ambas en inglés. 2011 federal tax form 1040 Pérdidas por Hecho Fortuito y Robo de Propiedad que Genera Ingresos Puede deducir una pérdida por hecho fortuito o robo como deducción detallada miscelánea no sujeta al límite del 2% si la propiedad dañada o robada era una propiedad que generaba ingresos (propiedad que se tiene con fines de inversión, tal como acciones, pagarés, bonos, oro, plata, terrenos sin construir y obras de arte). 2011 federal tax form 1040 Primero, declare la pérdida en la Sección B del Formulario 4684. 2011 federal tax form 1040 Asimismo, es posible que tenga que incluir la pérdida en el Formulario 4797, Sales of Business Property (Ventas de bienes comerciales), en inglés, si por algún otro motivo está obligado a presentar ese formulario. 2011 federal tax form 1040 Para calcular su deducción, sume todas las pérdidas por hecho fortuito o robo de este tipo de propiedad que se incluyan en las líneas 32 y 38b del Formulario 4684, o la línea 18a del Formulario 4797. 2011 federal tax form 1040 Para obtener más información acerca de las pérdidas por hecho fortuito y robo, consulte el capítulo 25. 2011 federal tax form 1040 Impuesto Federal sobre la Herencia Atribuible a los Ingresos de un Difunto Puede deducir el impuesto federal sobre la herencia atribuible a los ingresos de un difunto que usted, como beneficiario, incluye en sus ingresos brutos. 2011 federal tax form 1040 Los ingresos de un difunto son ingresos brutos que habría recibido éste si no hubiese fallecido y que no se podían incluir debidamente en la última declaración de impuestos del difunto. 2011 federal tax form 1040 Vea la Publicación 559, en inglés, para obtener más información. 2011 federal tax form 1040 Pérdidas de Apuestas y Juegos de Azar hasta la Cantidad de sus Ganancias de Juego Tiene que declarar la cantidad total de sus ganancias de apuestas y juegos de azar que tuvo en el año en la línea 21 del Formulario 1040. 2011 federal tax form 1040 Debe deducir sus pérdidas de juego que tuvo en el año en la línea 28 del Anexo A del Formulario 1040. 2011 federal tax form 1040 No puede deducir las pérdidas de apuestas y juegos de azar que sean superiores a las ganancias. 2011 federal tax form 1040 No puede reducir las ganancias de apuestas y juegos de azar por las pérdidas de juego y declarar la diferencia. 2011 federal tax form 1040 Tiene que declarar la cantidad total de las ganancias como ingresos, y las pérdidas (hasta la cantidad de su ganancias), como deducción detallada. 2011 federal tax form 1040 Por consiguiente, su documentación debe mostrar las ganancias por separado de las pérdidas. 2011 federal tax form 1040 Diario de ganancias y pérdidas. 2011 federal tax form 1040 Tiene que mantener un diario exacto o registro parecido de sus ganancias y pérdidas provenientes de apuestas y juegos de azar. 2011 federal tax form 1040 Su diario debe contener, como mínimo, la siguiente información: La fecha y el tipo de apuesta específica o actividad de apuestas. 2011 federal tax form 1040 El nombre y la dirección o ubicación del establecimiento de apuestas. 2011 federal tax form 1040 Los nombres de otras personas que lo acompañan en el establecimiento de apuestas. 2011 federal tax form 1040 La (o las) cantidad(es) que ganó o perdió. 2011 federal tax form 1040 Vea la Publicación 529, en inglés, para información adicional. 2011 federal tax form 1040 Gastos de Trabajo Relacionados con un Impedimento Si tiene una incapacidad física o mental que limite su capacidad para trabajar o limite sustancialmente una o más de las actividades principales de la vida (como realizar tareas manuales, caminar, hablar, respirar, aprender y trabajar), puede deducir sus gastos de trabajo relacionados con dicho impedimento. 2011 federal tax form 1040 Los gastos de trabajo relacionados con un impedimento son gastos ordinarios y necesarios del negocio incurridos por servicios de un asistente en su lugar de trabajo y por otros gastos relacionados con su lugar de trabajo que sean necesarios para que pueda trabajar. 2011 federal tax form 1040 Personas que trabajan por cuenta propia. 2011 federal tax form 1040   Si trabaja por cuenta propia, anote los gastos de trabajo relacionados con su incapacidad en el formulario correspondiente (Anexo C, C-EZ, E o F) que utilice para declarar los ingresos y gastos de negocio. 2011 federal tax form 1040 Pérdida por Otras Actividades Anotadas en el Recuadro 2 del Anexo K-1 del Formulario 1065-B Si la cantidad declarada en el recuadro 2 del Anexo K-1 del Formulario 1065-B es una pérdida, declárela en la línea 28 del Anexo A del Formulario 1040. 2011 federal tax form 1040 No está sujeto a las limitaciones de actividades pasivas. 2011 federal tax form 1040 Reintegros por la Reclamación de un Derecho Si tuvo que reintegrar más de $3,000 que incluyó en los ingresos de un año anterior porque en ese momento pensaba que tenía un derecho no restringido a dichos ingresos, tal vez pueda deducir la cantidad que pagó o solicitar que se la acrediten en sus impuestos. 2011 federal tax form 1040 Vea Reintegros en el capítulo 12, para más información. 2011 federal tax form 1040 Inversión no Recuperada en una Anualidad Un jubilado que haya contribuido al costo de una anualidad puede excluir de sus ingresos parte de cada pago que reciba, por ser rendimiento exento de impuestos de la inversión del jubilado. 2011 federal tax form 1040 Si el jubilado muere antes de recuperar toda la inversión libre de impuestos, se podría deducir toda inversión no recuperada en la declaración final de impuestos del jubilado. 2011 federal tax form 1040 Vea el capítulo 10 para obtener más información acerca del trato tributario de las pensiones y anualidades. 2011 federal tax form 1040 Gastos no Deducibles A continuación se enumeran algunos ejemplos de gastos no deducibles. 2011 federal tax form 1040 Luego, se explican en mayor detalle los gastos no deducibles adicionales. 2011 federal tax form 1040 Lista de Gastos no Deducibles Comisiones de agentes bursátiles que usted pagó con respecto a su arreglo IRA u otra propiedad de inversión. 2011 federal tax form 1040 Gastos de entierro o funeral, incluido el costo de la tumba. 2011 federal tax form 1040 Gastos de capital. 2011 federal tax form 1040 Cargos y licencias, como licencias de automóvil, de matrimonio y placas de identificación. 2011 federal tax form 1040 Pérdidas relacionadas con pasatiempos; no obstante, vea Gastos Relacionados con un Pasatiempo , anteriormente. 2011 federal tax form 1040 Reparaciones, seguro y alquiler de la vivienda. 2011 federal tax form 1040 Sobornos y comisiones clandestinas. 2011 federal tax form 1040 Vea Bribes and kickbacks (Sobornos y comisiones clandestinas) en el capítulo 11 de la Publicación 535, en inglés. 2011 federal tax form 1040 Pérdidas de la venta de su vivienda, mobiliario, automóvil personal, etc. 2011 federal tax form 1040 Primas de seguro personal por incapacidad. 2011 federal tax form 1040 Gastos personales, de vida o familiares. 2011 federal tax form 1040 Valor de salarios no recibidos o período de vacaciones no utilizadas. 2011 federal tax form 1040 Gastos de Adopción No puede deducir los gastos que incurre en la adopción de un niño, pero tal vez pueda tomar un crédito para esos gastos. 2011 federal tax form 1040 Vea el capítulo 36. 2011 federal tax form 1040 Gastos de Campaña Electoral No puede deducir gastos que un candidato para un cargo público incurre en su campaña electoral, incluso si el candidato está postulando para la reelección a dicho cargo. 2011 federal tax form 1040 Estos incluyen cargos de calificación e inscripción para las elecciones primarias. 2011 federal tax form 1040 Honorarios legales. 2011 federal tax form 1040   No puede deducir honorarios legales que se pagan para defender cargos derivados de la participación en una campaña política. 2011 federal tax form 1040 Cargos por Emisión de Cheques de Cuenta Personal Si tiene una cuenta corriente personal, no puede deducir cargos cobrados por el banco por el privilegio de emitir cheques, incluso si la cuenta devenga intereses. 2011 federal tax form 1040 Cuotas de Clubes Por lo general, no puede deducir el costo de afiliación a un club organizado para fines comerciales, de placer, recreación u otro fin social. 2011 federal tax form 1040 Esto incluye clubes de negocios, sociales, atléticos, de almuerzo, deportivos, de aerolíneas, hoteles, golf y de campo. 2011 federal tax form 1040 No puede deducir cuotas pagadas a una organización si uno de los propósitos principales de ésta es: Realizar actividades sociales para los miembros o sus invitados u Ofrecer a los miembros o sus invitados acceso a establecimientos de actividades sociales. 2011 federal tax form 1040 No se pueden deducir las cuotas pagadas a aerolíneas, hoteles o clubes de almuerzo. 2011 federal tax form 1040 Gastos de Transporte entre su Domicilio y el Trabajo No puede deducir gastos de viaje de ida y vuelta al trabajo (el costo de su transporte entre su residencia y su lugar de trabajo principal o habitual). 2011 federal tax form 1040 Si transporta herramientas, instrumentos u otros artículos en su automóvil de ida y vuelta a su trabajo, puede deducir sólo el costo adicional de transporte de dichos artículos, como el alquiler de un remolque para el transporte de los mismos. 2011 federal tax form 1040 Multas o Sanciones No puede deducir multas o sanciones que pague a una oficina del gobierno por infringir una ley. 2011 federal tax form 1040 Esto incluye cantidades pagadas para liquidar su responsabilidad real o posible de una multa o sanción (civil o penal). 2011 federal tax form 1040 Las multas o sanciones incluyen multas de estacionamiento, sanciones tributarias y sanciones deducidas de su sueldo de maestro después de una huelga ilícita. 2011 federal tax form 1040 Gastos de Balnearios No puede deducir gastos de un balneario (spa), aun si existe un requisito laboral para mantenerse en excelente condición física, como podría ser el caso de un oficial encargado del orden público. 2011 federal tax form 1040 Sistema de Seguridad Residencial No puede deducir el costo de un sistema de seguridad residencial como una deducción miscelánea. 2011 federal tax form 1040 Sin embargo, tal vez pueda reclamar una deducción por un sistema de seguridad residencial como gasto de negocios, si es que tiene una oficina en su casa. 2011 federal tax form 1040 Vea Oficina en el Domicilio bajo Gastos del Empleado no Reembolsados, anteriormente, y Security System (Sistema de seguridad) bajo Deducting Expenses (Deducción de gastos) en la Publicación 587, en inglés. 2011 federal tax form 1040 Seminarios Relacionados con Inversiones No puede deducir gastos por asistir a una convención, seminario o reunión parecida para fines de inversión. 2011 federal tax form 1040 Primas de Seguro de Vida No puede deducir primas que pague por su propio seguro de vida. 2011 federal tax form 1040 Tal vez pueda deducir como pensión para el cónyuge divorciado primas que pague por las pólizas de seguro de vida asignadas a su ex-cónyuge. 2011 federal tax form 1040 Consulte el capítulo 18 para información sobre la pensión alimenticia. 2011 federal tax form 1040 Gastos de Cabildeo Por lo general, no puede deducir cantidades pagadas o incurridas por concepto de cabildeo. 2011 federal tax form 1040 Estos incluyen gastos para: Influenciar el proceso de legislación, Participar o intervenir en una campaña política a favor o en contra de un candidato a un cargo público, Intentar influenciar al público en general, o a un segmento del público, respecto a las elecciones, materias legislativas o referéndums o Comunicarse directamente con funcionarios del poder ejecutivo bajo protección en un intento de influenciar las acciones del funcionario o las opiniones del mismo. 2011 federal tax form 1040 Los gastos de cabildeo también incluyen cantidades pagadas o gastos en los que ha incurrido para la investigación, preparación, planificación o coordinación de cualquiera de estas actividades. 2011 federal tax form 1040 Cuotas usadas para cabildeo. 2011 federal tax form 1040   Si una organización exenta de impuestos le notifica que esa parte de las cuotas u otras cantidades que usted paga a la organización se utilizan para pagar gastos de cabildeo no deducibles, no puede deducir esa parte de las cuotas. 2011 federal tax form 1040 Vea Lobbying Expenses (Gastos de cabildeo) en la Publicación 529, en inglés, para obtener información sobre las excepciones. 2011 federal tax form 1040 Dinero en Efectivo o Bienes Perdidos o Extraviados No puede deducir una pérdida basada en la simple desaparición de dinero o bienes. 2011 federal tax form 1040 Sin embargo, una pérdida o desaparición accidental de bienes puede considerarse hecho fortuito si es causada por un acontecimiento que se pueda identificar y que sea repentino, inesperado o poco común. 2011 federal tax form 1040 Vea el capítulo 25. 2011 federal tax form 1040 Ejemplo. 2011 federal tax form 1040 Se cierra una puerta de su automóvil accidentalmente en su mano y rompe el engaste de su anillo de diamante. 2011 federal tax form 1040 El diamante se cae del anillo y nunca lo pudo encontrar. 2011 federal tax form 1040 La pérdida del diamante es un hecho fortuito. 2011 federal tax form 1040 Almuerzos con Compañeros de Trabajo No puede deducir los gastos de almuerzos con compañeros de trabajo, excepto si viaja lejos de casa por razones comerciales. 2011 federal tax form 1040 Vea el capítulo 26 para obtener información acerca de los gastos deducibles mientras se encuentra lejos de su domicilio. 2011 federal tax form 1040 Comidas Cuando Trabaja Hasta Tarde No puede deducir el costo de comidas si trabaja hasta tarde. 2011 federal tax form 1040 Sin embargo, tal vez pueda declarar una deducción si el costo de las comidas es un gasto de entretenimiento deducible o si viaja lejos de casa. 2011 federal tax form 1040 Vea el capítulo 26 para obtener información sobre gastos de entretenimiento deducibles y gastos durante viajes lejos de su domicilio. 2011 federal tax form 1040 Gastos por Asuntos Legales Personales No puede deducir gastos por asuntos legales personales, como aquéllos en los que se ha incurrido en los siguientes casos: Tutoría de hijos. 2011 federal tax form 1040 Demanda por incumplimiento de promesa de matrimonio. 2011 federal tax form 1040 Cargos civiles o penales derivados de una relación personal. 2011 federal tax form 1040 Daños por lesiones personales, a excepción de ciertas reclamaciones por discriminación ilegal y por denuncia de actividades ilícitas en una empresa. 2011 federal tax form 1040 Preparación de un título (o defensa o perfeccionamiento de un título). 2011 federal tax form 1040 Preparación de un testamento. 2011 federal tax form 1040 Reclamaciones de propiedad o liquidación de propiedad en un divorcio. 2011 federal tax form 1040 No puede deducir estos gastos incluso si una consecuencia del proceso legal es la pérdida de propiedad que genera ingresos. 2011 federal tax form 1040 Donaciones Políticas No puede deducir donaciones hechas a un candidato político, un comité de campaña o un fondo para publicar boletines. 2011 federal tax form 1040 Los avisos publicitarios en programas de convenciones y entradas a cenas o programas que benefician a un partido o candidato político no son deducibles. 2011 federal tax form 1040 Costos de Acreditación Profesional No puede deducir costos de acreditación profesional tales como: Costos de certificado de contabilidad pagados para el derecho inicial de poder practicar la contabilidad. 2011 federal tax form 1040 Costos del examen para el ejercicio de la abogacía y gastos afines para asegurarse el ingreso inicial al colegio de abogados. 2011 federal tax form 1040 Costos de licencias médicas y dentales para obtener la primera licencia de ejercicio de la profesión. 2011 federal tax form 1040 Reputación Profesional No puede deducir gastos por salir en un programa de radio o televisión para aumentar su prestigio personal o establecer su reputación profesional. 2011 federal tax form 1040 Aportaciones a un Fondo de Ayuda Económica No puede deducir aportaciones pagadas a un plan privado que pague beneficios a los empleados cubiertos que no puedan trabajar debido a una lesión o enfermedad no relacionada con el trabajo. 2011 federal tax form 1040 Servicio Telefónico Residencial No puede deducir un cobro (incluidos impuestos) por un servicio telefónico local básico de la línea telefónica principal de su residencia, aun cuando se utilice en una ocupación o negocio. 2011 federal tax form 1040 Reuniones de Accionistas No puede deducir gastos de transporte ni otros que paga para asistir a reuniones de accionistas de empresas en las que tiene participación accionaria, pero no de otra índole. 2011 federal tax form 1040 No puede deducir estos gastos aunque asista a la reunión para obtener información que podría ser útil al efectuar otras inversiones. 2011 federal tax form 1040 Gastos de Ingresos Exentos de Impuestos No puede deducir gastos que incurre para generar ingresos exentos de impuestos. 2011 federal tax form 1040 No puede deducir intereses de una deuda en la que haya incurrido o continúa para comprar o portar valores exentos de impuestos. 2011 federal tax form 1040 Si usted incurre gastos para generar ingresos tributables y exentos de impuestos, pero no puede identificar los gastos que generan cada tipo de ingreso, tiene que dividir los gastos según la cantidad de cada tipo de ingreso para determinar la cantidad que puede deducir. 2011 federal tax form 1040 Ejemplo. 2011 federal tax form 1040 Durante el año recibió intereses tributables de $4,800 e intereses exentos de impuestos de $1,200. 2011 federal tax form 1040 Al obtener este ingreso, tuvo un total de gastos de $500 durante el año. 2011 federal tax form 1040 No puede identificar la cantidad de cada gasto correspondiente a cada ingreso. 2011 federal tax form 1040 Por lo tanto, el 80% ($4,800/$6,000) del gasto corresponde a los intereses tributables y el 20% ($1,200/$6,000) corresponde a los intereses exentos de impuestos. 2011 federal tax form 1040 Puede deducir, sujeto al límite del 2%, gastos de $400 (80% de $500). 2011 federal tax form 1040 Gastos de Viaje para Otra Persona Por lo general, no puede deducir los gastos de viaje que pague o en los que incurra para su cónyuge, dependiente, u otra persona que lo acompañe (o su empleado) en un viaje de negocios o por motivos personales, a menos que el cónyuge, el dependiente, o la otra persona sea un empleado del contribuyente; el viaje sea para un propósito comercial de buena fe (bona fide); y tales gastos serían de otra manera deducibles por el cónyuge, dependiente u otra persona. 2011 federal tax form 1040 Vea el capítulo 26 para más información sobre gastos de viaje deducibles. 2011 federal tax form 1040 Aportaciones Voluntarias al Fondo de Beneficios por Desempleo No puede deducir aportaciones voluntarias al fondo de beneficios por desempleo que usted realice a un fondo sindical o a un fondo privado. 2011 federal tax form 1040 Sin embargo, puede deducir las aportaciones como impuestos si la ley estatal le exige que las haga a un fondo de desempleo del estado que le protege de la pérdida de sueldos por desempleo causado por condiciones comerciales. 2011 federal tax form 1040 Relojes de Pulsera No puede deducir el costo de un reloj de pulsera, incluso si existe un requisito laboral que establezca que tiene que saber la hora correcta para realizar sus funciones de manera adecuada. 2011 federal tax form 1040 Prev  Up  Next   Home   More Online Publications
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The 2011 Federal Tax Form 1040

2011 federal tax form 1040 Publication 547 - Main Content Table of Contents CasualtyFamily pet. 2011 federal tax form 1040 Progressive deterioration. 2011 federal tax form 1040 Special Procedure for Damage From Corrosive Drywall Theft Loss on Deposits Proof of Loss Figuring a LossGain from reimbursement. 2011 federal tax form 1040 Business or income-producing property. 2011 federal tax form 1040 Loss of inventory. 2011 federal tax form 1040 Leased property. 2011 federal tax form 1040 Exception for personal-use real property. 2011 federal tax form 1040 Decrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Deduction Limits2% Rule $100 Rule 10% Rule Figuring the Deduction Figuring a GainPostponement of Gain When To Report Gains and LossesLoss on deposits. 2011 federal tax form 1040 Lessee's loss. 2011 federal tax form 1040 Disaster Area LossesDisaster loss to inventory. 2011 federal tax form 1040 Main home in disaster area. 2011 federal tax form 1040 Unsafe home. 2011 federal tax form 1040 Time limit for making choice. 2011 federal tax form 1040 Revoking your choice. 2011 federal tax form 1040 Figuring the loss deduction. 2011 federal tax form 1040 How to report the loss on Form 1040X. 2011 federal tax form 1040 Records. 2011 federal tax form 1040 Need a copy of your tax return for the preceding year? Postponed Tax Deadlines Contacting the Federal Emergency Management Agency (FEMA) How To Report Gains and LossesProperty held 1 year or less. 2011 federal tax form 1040 Property held more than 1 year. 2011 federal tax form 1040 Depreciable property. 2011 federal tax form 1040 Adjustments to Basis If Deductions Are More Than Income How To Get Tax HelpLow Income Taxpayer Clinics Casualty A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. 2011 federal tax form 1040 A sudden event is one that is swift, not gradual or progressive. 2011 federal tax form 1040 An unexpected event is one that is ordinarily unanticipated and unintended. 2011 federal tax form 1040 An unusual event is one that is not a day-to-day occurrence and that is not typical of the activity in which you were engaged. 2011 federal tax form 1040 Generally, casualty losses are deductible during the taxable year that the loss occurred. 2011 federal tax form 1040 See Table 3, later. 2011 federal tax form 1040 Deductible losses. 2011 federal tax form 1040   Deductible casualty losses can result from a number of different causes, including the following. 2011 federal tax form 1040 Car accidents (but see Nondeductible losses , next, for exceptions). 2011 federal tax form 1040 Earthquakes. 2011 federal tax form 1040 Fires (but see Nondeductible losses , next, for exceptions). 2011 federal tax form 1040 Floods. 2011 federal tax form 1040 Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses , later. 2011 federal tax form 1040 Mine cave-ins. 2011 federal tax form 1040 Shipwrecks. 2011 federal tax form 1040 Sonic booms. 2011 federal tax form 1040 Storms, including hurricanes and tornadoes. 2011 federal tax form 1040 Terrorist attacks. 2011 federal tax form 1040 Vandalism. 2011 federal tax form 1040 Volcanic eruptions. 2011 federal tax form 1040 Nondeductible losses. 2011 federal tax form 1040   A casualty loss is not deductible if the damage or destruction is caused by the following. 2011 federal tax form 1040 Accidentally breaking articles such as glassware or china under normal conditions. 2011 federal tax form 1040 A family pet (explained below). 2011 federal tax form 1040 A fire if you willfully set it, or pay someone else to set it. 2011 federal tax form 1040 A car accident if your willful negligence or willful act caused it. 2011 federal tax form 1040 The same is true if the willful act or willful negligence of someone acting for you caused the accident. 2011 federal tax form 1040 Progressive deterioration (explained below). 2011 federal tax form 1040 However, see Special Procedure for Damage From Corrosive Drywall , later. 2011 federal tax form 1040 Family pet. 2011 federal tax form 1040   Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed earlier under Casualty are met. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 Your antique oriental rug was damaged by your new puppy before it was housebroken. 2011 federal tax form 1040 Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss. 2011 federal tax form 1040 Progressive deterioration. 2011 federal tax form 1040   Loss of property due to progressive deterioration is not deductible as a casualty loss. 2011 federal tax form 1040 This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. 2011 federal tax form 1040 The following are examples of damage due to progressive deterioration. 2011 federal tax form 1040 The steady weakening of a building due to normal wind and weather conditions. 2011 federal tax form 1040 The deterioration and damage to a water heater that bursts. 2011 federal tax form 1040 However, the rust and water damage to rugs and drapes caused by the bursting of a water heater does qualify as a casualty. 2011 federal tax form 1040 Most losses of property caused by droughts. 2011 federal tax form 1040 To be deductible, a drought-related loss generally must be incurred in a trade or business or in a transaction entered into for profit. 2011 federal tax form 1040 Termite or moth damage. 2011 federal tax form 1040 The damage or destruction of trees, shrubs, or other plants by a fungus, disease, insects, worms, or similar pests. 2011 federal tax form 1040 However, a sudden destruction due to an unexpected or unusual infestation of beetles or other insects may result in a casualty loss. 2011 federal tax form 1040 Special Procedure for Damage From Corrosive Drywall Under a special procedure, you can deduct the amounts you paid to repair damage to your home and household appliances due to corrosive drywall. 2011 federal tax form 1040 Under this procedure, you treat the amounts paid for repairs as a casualty loss in the year of payment. 2011 federal tax form 1040 For example, amounts you paid for repairs in 2013 are deductible on your 2013 tax return and amounts you paid for repairs in 2012 are deductible on your 2012 tax return. 2011 federal tax form 1040 Note. 2011 federal tax form 1040 If you paid for any repairs before 2013 and you choose to follow this special procedure, you can amend your return for the earlier year by filing Form 1040X, Amended U. 2011 federal tax form 1040 S. 2011 federal tax form 1040 Individual Income Tax Return, and attaching a completed Form 4684 for the appropriate year. 2011 federal tax form 1040 Form 4684 for the appropriate year can be found at IRS. 2011 federal tax form 1040 gov. 2011 federal tax form 1040 Generally, Form 1040X must be filed within 3 years after the date the original return was filed or within 2 years after the date the tax was paid, whichever is later. 2011 federal tax form 1040 Corrosive drywall. 2011 federal tax form 1040   For purposes of this special procedure, “corrosive drywall” means drywall that is identified as problem drywall under the two-step identification method published by the Consumer Product Safety Commission (CPSC) and the Department of Housing and Urban Development (HUD) in their interim guidance dated January 28, 2010, as revised by the CPSC and HUD. 2011 federal tax form 1040 The revised identification guidance and remediation guidelines are available at www. 2011 federal tax form 1040 cpsc. 2011 federal tax form 1040 gov/Safety-Education/Safety-Education-Centers/Drywall. 2011 federal tax form 1040 Special instructions for completing Form 4684. 2011 federal tax form 1040   If you choose to follow this special procedure, complete Form 4684, Section A, according to the instructions below. 2011 federal tax form 1040 The IRS will not challenge your treatment of damage resulting from corrosive drywall as a casualty loss if you determine and report the loss as explained below. 2011 federal tax form 1040 Top margin of Form 4684. 2011 federal tax form 1040   Enter “Revenue Procedure 2010-36”. 2011 federal tax form 1040 Line 1. 2011 federal tax form 1040   Enter the information required by the line 1 instructions. 2011 federal tax form 1040 Line 2. 2011 federal tax form 1040   Skip this line. 2011 federal tax form 1040 Line 3. 2011 federal tax form 1040   Enter the amount of insurance or other reimbursements you received (including through litigation). 2011 federal tax form 1040 If none, enter -0-. 2011 federal tax form 1040 Lines 4–7. 2011 federal tax form 1040   Skip these lines. 2011 federal tax form 1040 Line 8. 2011 federal tax form 1040   Enter the amount you paid to repair the damage to your home and household appliances due to corrosive drywall. 2011 federal tax form 1040 Enter only the amounts you paid to restore your home to the condition existing immediately before the damage. 2011 federal tax form 1040 Do not enter any amounts you paid for improvements or additions that increased the value of your home above its pre-loss value. 2011 federal tax form 1040 If you replaced a household appliance instead of repairing it, enter the lesser of: The current cost to replace the original appliance, or The basis of the original appliance (generally its cost). 2011 federal tax form 1040 Line 9. 2011 federal tax form 1040   If line 8 is more than line 3, do one of the following. 2011 federal tax form 1040 If you have a pending claim for reimbursement (or you intend to pursue reimbursement), enter 75% of the difference between lines 3 and 8. 2011 federal tax form 1040 If item (1) does not apply to you, enter the full amount of the difference between lines 3 and 8. 2011 federal tax form 1040 If line 8 is less than or equal to line 3, you cannot claim a casualty loss deduction using this special procedure. 2011 federal tax form 1040    If you have a pending claim for reimbursement (or you intend to pursue reimbursement), you may have income or an additional deduction in a later tax year depending on the actual amount of reimbursement received. 2011 federal tax form 1040 See Reimbursement Received After Deducting Loss, later. 2011 federal tax form 1040 Lines 10–18. 2011 federal tax form 1040   Complete these lines according to the Instructions for Form 4684. 2011 federal tax form 1040 Choosing not to follow this special procedure. 2011 federal tax form 1040   If you choose not to follow this special procedure, you are subject to all of the provisions that apply to the deductibility of casualty losses, and you must complete lines 1–9 according to the Instructions for Form 4684. 2011 federal tax form 1040 This means, for example, that you must establish that the damage, destruction, or loss of property resulted from an identifiable event as defined earlier under Casualty . 2011 federal tax form 1040 Furthermore, you must have proof that shows the following. 2011 federal tax form 1040 The loss is properly deductible in the tax year you claimed it and not in some other year. 2011 federal tax form 1040 See When To Report Gains and Losses , later. 2011 federal tax form 1040 The amount of the claimed loss. 2011 federal tax form 1040 See Proof of Loss , later. 2011 federal tax form 1040 No claim for reimbursement of any portion of the loss exists for which there is a reasonable prospect of recovery. 2011 federal tax form 1040 See When To Report Gains and Losses , later. 2011 federal tax form 1040 Theft A theft is the taking and removing of money or property with the intent to deprive the owner of it. 2011 federal tax form 1040 The taking of property must be illegal under the law of the state where it occurred and it must have been done with criminal intent. 2011 federal tax form 1040 You do not need to show a conviction for theft. 2011 federal tax form 1040 Theft includes the taking of money or property by the following means. 2011 federal tax form 1040 Blackmail. 2011 federal tax form 1040 Burglary. 2011 federal tax form 1040 Embezzlement. 2011 federal tax form 1040 Extortion. 2011 federal tax form 1040 Kidnapping for ransom. 2011 federal tax form 1040 Larceny. 2011 federal tax form 1040 Robbery. 2011 federal tax form 1040 The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. 2011 federal tax form 1040 Decline in market value of stock. 2011 federal tax form 1040   You cannot deduct as a theft loss the decline in market value of stock acquired on the open market for investment if the decline is caused by disclosure of accounting fraud or other illegal misconduct by the officers or directors of the corporation that issued the stock. 2011 federal tax form 1040 However, you can deduct as a capital loss the loss you sustain when you sell or exchange the stock or the stock becomes completely worthless. 2011 federal tax form 1040 You report a capital loss on Schedule D (Form 1040). 2011 federal tax form 1040 For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. 2011 federal tax form 1040 Mislaid or lost property. 2011 federal tax form 1040    The simple disappearance of money or property is not a theft. 2011 federal tax form 1040 However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. 2011 federal tax form 1040 Sudden, unexpected, and unusual events were defined earlier under Casualty . 2011 federal tax form 1040 Example. 2011 federal tax form 1040 A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. 2011 federal tax form 1040 The diamond falls from the ring and is never found. 2011 federal tax form 1040 The loss of the diamond is a casualty. 2011 federal tax form 1040 Losses from Ponzi-type investment schemes. 2011 federal tax form 1040   The IRS has issued the following guidance to assist taxpayers who are victims of losses from Ponzi-type investment schemes: Revenue Ruling 2009-9, 2009-14 I. 2011 federal tax form 1040 R. 2011 federal tax form 1040 B. 2011 federal tax form 1040 735 (available at www. 2011 federal tax form 1040 irs. 2011 federal tax form 1040 gov/irb/2009-14_IRB/ar07. 2011 federal tax form 1040 html). 2011 federal tax form 1040 Revenue Procedure 2009-20, 2009-14 I. 2011 federal tax form 1040 R. 2011 federal tax form 1040 B. 2011 federal tax form 1040 749 (available at www. 2011 federal tax form 1040 irs. 2011 federal tax form 1040 gov/irb/2009-14_IRB/ar11. 2011 federal tax form 1040 html). 2011 federal tax form 1040 Revenue Procedure 2011-58, 2011-50 I. 2011 federal tax form 1040 R. 2011 federal tax form 1040 B. 2011 federal tax form 1040 847 (available at www. 2011 federal tax form 1040 irs. 2011 federal tax form 1040 gov/irb/2011-50_IRB/ar11. 2011 federal tax form 1040 html). 2011 federal tax form 1040 If you qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, and you choose to follow the procedures in the guidance, first fill out Section C of Form 4684 to determine the amount to enter on Section B, line 28. 2011 federal tax form 1040 Skip lines 19 to 27, but you must fill out Section B, lines 29 to 39, as appropriate. 2011 federal tax form 1040 Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. 2011 federal tax form 1040 You do not need to complete Appendix A. 2011 federal tax form 1040 For more information, see the above revenue ruling and revenue procedures, and the Instructions for Form 4684. 2011 federal tax form 1040   If you choose not to use the procedures in Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate. 2011 federal tax form 1040 Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. 2011 federal tax form 1040 If you incurred this type of loss, you can choose one of the following ways to deduct the loss. 2011 federal tax form 1040 As a casualty loss. 2011 federal tax form 1040 As an ordinary loss. 2011 federal tax form 1040 As a nonbusiness bad debt. 2011 federal tax form 1040 Casualty loss or ordinary loss. 2011 federal tax form 1040   You can choose to deduct a loss on deposits as a casualty loss or as an ordinary loss for any year in which you can reasonably estimate how much of your deposits you have lost in an insolvent or bankrupt financial institution. 2011 federal tax form 1040 The choice generally is made on the return you file for that year and applies to all your losses on deposits for the year in that particular financial institution. 2011 federal tax form 1040 If you treat the loss as a casualty or ordinary loss, you cannot treat the same amount of the loss as a nonbusiness bad debt when it actually becomes worthless. 2011 federal tax form 1040 However, you can take a nonbusiness bad debt deduction for any amount of loss that is more than the estimated amount you deducted as a casualty or ordinary loss. 2011 federal tax form 1040 Once you make the choice, you cannot change it without permission from the Internal Revenue Service. 2011 federal tax form 1040   If you claim an ordinary loss, report it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. 2011 federal tax form 1040 The maximum amount you can claim is $20,000 ($10,000 if you are married filing separately) reduced by any expected state insurance proceeds. 2011 federal tax form 1040 Your loss is subject to the 2%-of-adjusted-gross-income limit. 2011 federal tax form 1040 You cannot choose to claim an ordinary loss if any part of the deposit is federally insured. 2011 federal tax form 1040 Nonbusiness bad debt. 2011 federal tax form 1040   If you do not choose to deduct the loss as a casualty loss or as an ordinary loss, you must wait until the year the actual loss is determined and deduct the loss as a nonbusiness bad debt in that year. 2011 federal tax form 1040 How to report. 2011 federal tax form 1040   The kind of deduction you choose for your loss on deposits determines how you report your loss. 2011 federal tax form 1040 See Table 1. 2011 federal tax form 1040 More information. 2011 federal tax form 1040   For more information, see Special Treatment for Losses on Deposits in Insolvent or Bankrupt Financial Institutions in the Instructions for Form 4684. 2011 federal tax form 1040 Deducted loss recovered. 2011 federal tax form 1040   If you recover an amount you deducted as a loss in an earlier year, you may have to include the amount recovered in your income for the year of recovery. 2011 federal tax form 1040 If any part of the original deduction did not reduce your tax in the earlier year, you do not have to include that part of the recovery in your income. 2011 federal tax form 1040 For more information, see Recoveries in Publication 525. 2011 federal tax form 1040 Proof of Loss To deduct a casualty or theft loss, you must be able to show that there was a casualty or theft. 2011 federal tax form 1040 You also must be able to support the amount you take as a deduction. 2011 federal tax form 1040 Casualty loss proof. 2011 federal tax form 1040   For a casualty loss, you should be able to show all of the following. 2011 federal tax form 1040 The type of casualty (car accident, fire, storm, etc. 2011 federal tax form 1040 ) and when it occurred. 2011 federal tax form 1040 That the loss was a direct result of the casualty. 2011 federal tax form 1040 That you were the owner of the property, or if you leased the property from someone else, that you were contractually liable to the owner for the damage. 2011 federal tax form 1040 Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. 2011 federal tax form 1040 Theft loss proof. 2011 federal tax form 1040   For a theft loss, you should be able to show all of the following. 2011 federal tax form 1040 When you discovered that your property was missing. 2011 federal tax form 1040 That your property was stolen. 2011 federal tax form 1040 That you were the owner of the property. 2011 federal tax form 1040 Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. 2011 federal tax form 1040    It is important that you have records that will prove your deduction. 2011 federal tax form 1040 If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. 2011 federal tax form 1040 Figuring a Loss To determine your deduction for a casualty or theft loss, you must first figure your loss. 2011 federal tax form 1040 Table 1. 2011 federal tax form 1040 Reporting Loss on Deposits IF you choose to report the loss as a(n). 2011 federal tax form 1040 . 2011 federal tax form 1040 . 2011 federal tax form 1040   THEN report it on. 2011 federal tax form 1040 . 2011 federal tax form 1040 . 2011 federal tax form 1040 casualty loss   Form 4684 and Schedule A  (Form 1040). 2011 federal tax form 1040 ordinary loss   Schedule A (Form 1040). 2011 federal tax form 1040 nonbusiness bad debt   Form 8949 and Schedule D (Form 1040). 2011 federal tax form 1040 Amount of loss. 2011 federal tax form 1040   Figure the amount of your loss using the following steps. 2011 federal tax form 1040 Determine your adjusted basis in the property before the casualty or theft. 2011 federal tax form 1040 Determine the decrease in fair market value (FMV) of the property as a result of the casualty or theft. 2011 federal tax form 1040 From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive. 2011 federal tax form 1040 For personal-use property and property used in performing services as an employee, apply the deduction limits, discussed later, to determine the amount of your deductible loss. 2011 federal tax form 1040 Gain from reimbursement. 2011 federal tax form 1040   If your reimbursement is more than your adjusted basis in the property, you have a gain. 2011 federal tax form 1040 This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. 2011 federal tax form 1040 If you have a gain, you may have to pay tax on it, or you may be able to postpone reporting the gain. 2011 federal tax form 1040 See Figuring a Gain , later. 2011 federal tax form 1040 Business or income-producing property. 2011 federal tax form 1040   If you have business or income-producing property, such as rental property, and it is stolen or completely destroyed, the decrease in FMV is not considered. 2011 federal tax form 1040 Your loss is figured as follows:   Your adjusted basis in the property     MINUS     Any salvage value     MINUS     Any insurance or other reimbursement you  receive or expect to receive   Loss of inventory. 2011 federal tax form 1040   There are two ways you can deduct a casualty or theft loss of inventory, including items you hold for sale to customers. 2011 federal tax form 1040   One way is to deduct the loss through the increase in the cost of goods sold by properly reporting your opening and closing inventories. 2011 federal tax form 1040 Do not claim this loss again as a casualty or theft loss. 2011 federal tax form 1040 If you take the loss through the increase in the cost of goods sold, include any insurance or other reimbursement you receive for the loss in gross income. 2011 federal tax form 1040   The other way is to deduct the loss separately. 2011 federal tax form 1040 If you deduct it separately, eliminate the affected inventory items from the cost of goods sold by making a downward adjustment to opening inventory or purchases. 2011 federal tax form 1040 Reduce the loss by the reimbursement you received. 2011 federal tax form 1040 Do not include the reimbursement in gross income. 2011 federal tax form 1040 If you do not receive the reimbursement by the end of the year, you may not claim a loss to the extent you have a reasonable prospect of recovery. 2011 federal tax form 1040 Leased property. 2011 federal tax form 1040   If you are liable for casualty damage to property you lease, your loss is the amount you must pay to repair the property minus any insurance or other reimbursement you receive or expect to receive. 2011 federal tax form 1040 Separate computations. 2011 federal tax form 1040   Generally, if a single casualty or theft involves more than one item of property, you must figure the loss on each item separately. 2011 federal tax form 1040 Then combine the losses to determine the total loss from that casualty or theft. 2011 federal tax form 1040 Exception for personal-use real property. 2011 federal tax form 1040   In figuring a casualty loss on personal-use real property, the entire property (including any improvements, such as buildings, trees, and shrubs) is treated as one item. 2011 federal tax form 1040 Figure the loss using the smaller of the following. 2011 federal tax form 1040 The decrease in FMV of the entire property. 2011 federal tax form 1040 The adjusted basis of the entire property. 2011 federal tax form 1040   See Real property under Figuring the Deduction, later. 2011 federal tax form 1040 Decrease in Fair Market Value Fair market value (FMV) is the price for which you could sell your property to a willing buyer when neither of you has to sell or buy and both of you know all the relevant facts. 2011 federal tax form 1040 The decrease in FMV used to figure the amount of a casualty or theft loss is the difference between the property's fair market value immediately before and immediately after the casualty or theft. 2011 federal tax form 1040 FMV of stolen property. 2011 federal tax form 1040   The FMV of property immediately after a theft is considered to be zero because you no longer have the property. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 Several years ago, you purchased silver dollars at face value for $150. 2011 federal tax form 1040 This is your adjusted basis in the property. 2011 federal tax form 1040 Your silver dollars were stolen this year. 2011 federal tax form 1040 The FMV of the coins was $1,000 just before they were stolen, and insurance did not cover them. 2011 federal tax form 1040 Your theft loss is $150. 2011 federal tax form 1040 Recovered stolen property. 2011 federal tax form 1040   Recovered stolen property is your property that was stolen and later returned to you. 2011 federal tax form 1040 If you recovered property after you had already taken a theft loss deduction, you must refigure your loss using the smaller of the property's adjusted basis (explained later) or the decrease in FMV from the time just before it was stolen until the time it was recovered. 2011 federal tax form 1040 Use this amount to refigure your total loss for the year in which the loss was deducted. 2011 federal tax form 1040   If your refigured loss is less than the loss you deducted, you generally have to report the difference as income in the recovery year. 2011 federal tax form 1040 But report the difference only up to the amount of the loss that reduced your tax. 2011 federal tax form 1040 For more information on the amount to report, see Recoveries in Publication 525. 2011 federal tax form 1040 Figuring Decrease in FMV — Items To Consider To figure the decrease in FMV because of a casualty or theft, you generally need a competent appraisal. 2011 federal tax form 1040 However, other measures also can be used to establish certain decreases. 2011 federal tax form 1040 See Appraisal and Cost of cleaning up or making repairs , next. 2011 federal tax form 1040 Appraisal. 2011 federal tax form 1040   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterwards should be made by a competent appraiser. 2011 federal tax form 1040 The appraiser must recognize the effects of any general market decline that may occur along with the casualty. 2011 federal tax form 1040 This information is needed to limit any deduction to the actual loss resulting from damage to the property. 2011 federal tax form 1040   Several factors are important in evaluating the accuracy of an appraisal, including the following. 2011 federal tax form 1040 The appraiser's familiarity with your property before and after the casualty or theft. 2011 federal tax form 1040 The appraiser's knowledge of sales of comparable property in the area. 2011 federal tax form 1040 The appraiser's knowledge of conditions in the area of the casualty. 2011 federal tax form 1040 The appraiser's method of appraisal. 2011 federal tax form 1040 You may be able to use an appraisal that you used to get a federal loan (or a federal loan guarantee) as the result of a federally declared disaster to establish the amount of your disaster loss. 2011 federal tax form 1040 For more information on disasters, see Disaster Area Losses, later. 2011 federal tax form 1040 Cost of cleaning up or making repairs. 2011 federal tax form 1040   The cost of repairing damaged property is not part of a casualty loss. 2011 federal tax form 1040 Neither is the cost of cleaning up after a casualty. 2011 federal tax form 1040 But you can use the cost of cleaning up or of making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. 2011 federal tax form 1040 The repairs are actually made. 2011 federal tax form 1040 The repairs are necessary to bring the property back to its condition before the casualty. 2011 federal tax form 1040 The amount spent for repairs is not excessive. 2011 federal tax form 1040 The repairs take care of the damage only. 2011 federal tax form 1040 The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. 2011 federal tax form 1040 Landscaping. 2011 federal tax form 1040   The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. 2011 federal tax form 1040 You may be able to measure your loss by what you spend on the following. 2011 federal tax form 1040 Removing destroyed or damaged trees and shrubs, minus any salvage you receive. 2011 federal tax form 1040 Pruning and other measures taken to preserve damaged trees and shrubs. 2011 federal tax form 1040 Replanting necessary to restore the property to its approximate value before the casualty. 2011 federal tax form 1040 Car value. 2011 federal tax form 1040   Books issued by various automobile organizations that list your car may be useful in figuring the value of your car. 2011 federal tax form 1040 You can use the books' retail values and modify them by factors such as the mileage and condition of your car to figure its value. 2011 federal tax form 1040 The prices are not official, but they may be useful in determining value and suggesting relative prices for comparison with current sales and offerings in your area. 2011 federal tax form 1040 If your car is not listed in the books, determine its value from other sources. 2011 federal tax form 1040 A dealer's offer for your car as a trade-in on a new car is not usually a measure of its true value. 2011 federal tax form 1040 Figuring Decrease in FMV — Items Not To Consider You generally should not consider the following items when attempting to establish the decrease in FMV of your property. 2011 federal tax form 1040 Cost of protection. 2011 federal tax form 1040   The cost of protecting your property against a casualty or theft is not part of a casualty or theft loss. 2011 federal tax form 1040 The amount you spend on insurance or to board up your house against a storm is not part of your loss. 2011 federal tax form 1040 If the property is business property, these expenses are deductible as business expenses. 2011 federal tax form 1040   If you make permanent improvements to your property to protect it against a casualty or theft, add the cost of these improvements to your basis in the property. 2011 federal tax form 1040 An example would be the cost of a dike to prevent flooding. 2011 federal tax form 1040 Exception. 2011 federal tax form 1040   You cannot increase your basis in the property by, or deduct as a business expense, any expenditures you made with respect to qualified disaster mitigation payments (discussed later under Disaster Area Losses ). 2011 federal tax form 1040 Related expenses. 2011 federal tax form 1040   The incidental expenses due to a casualty or theft, such as expenses for the treatment of personal injuries, for temporary housing, or for a rental car, are not part of your casualty or theft loss. 2011 federal tax form 1040 However, they may be deductible as business expenses if the damaged or stolen property is business property. 2011 federal tax form 1040 Replacement cost. 2011 federal tax form 1040   The cost of replacing stolen or destroyed property is not part of a casualty or theft loss. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 You bought a new chair 4 years ago for $300. 2011 federal tax form 1040 In April, a fire destroyed the chair. 2011 federal tax form 1040 You estimate that it would cost $500 to replace it. 2011 federal tax form 1040 If you had sold the chair before the fire, you estimate that you could have received only $100 for it because it was 4 years old. 2011 federal tax form 1040 The chair was not insured. 2011 federal tax form 1040 Your loss is $100, the FMV of the chair before the fire. 2011 federal tax form 1040 It is not $500, the replacement cost. 2011 federal tax form 1040 Sentimental value. 2011 federal tax form 1040   Do not consider sentimental value when determining your loss. 2011 federal tax form 1040 If a family portrait, heirloom, or keepsake is damaged, destroyed, or stolen, you must base your loss on its FMV, as limited by your adjusted basis in the property. 2011 federal tax form 1040 Decline in market value of property in or near casualty area. 2011 federal tax form 1040   A decrease in the value of your property because it is in or near an area that suffered a casualty, or that might again suffer a casualty, is not to be taken into consideration. 2011 federal tax form 1040 You have a loss only for actual casualty damage to your property. 2011 federal tax form 1040 However, if your home is in a federally declared disaster area, see Disaster Area Losses , later. 2011 federal tax form 1040 Costs of photographs and appraisals. 2011 federal tax form 1040   Photographs taken after a casualty will be helpful in establishing the condition and value of the property after it was damaged. 2011 federal tax form 1040 Photographs showing the condition of the property after it was repaired, restored, or replaced may also be helpful. 2011 federal tax form 1040   Appraisals are used to figure the decrease in FMV because of a casualty or theft. 2011 federal tax form 1040 See Appraisal , earlier, under Figuring Decrease in FMV — Items To Consider, for information about appraisals. 2011 federal tax form 1040   The costs of photographs and appraisals used as evidence of the value and condition of property damaged as a result of a casualty are not a part of the loss. 2011 federal tax form 1040 They are expenses in determining your tax liability. 2011 federal tax form 1040 You can claim these costs as a miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income limit on Schedule A (Form 1040). 2011 federal tax form 1040 Adjusted Basis The measure of your investment in the property you own is its basis. 2011 federal tax form 1040 For property you buy, your basis is usually its cost to you. 2011 federal tax form 1040 For property you acquire in some other way, such as inheriting it, receiving it as a gift, or getting it in a nontaxable exchange, you must figure your basis in another way, as explained in Publication 551. 2011 federal tax form 1040 If you inherited the property from someone who died in 2010 and the executor of the decedent's estate made the election to file Form 8939, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. 2011 federal tax form 1040 Adjustments to basis. 2011 federal tax form 1040    While you own the property, various events may take place that change your basis. 2011 federal tax form 1040 Some events, such as additions or permanent improvements to the property, increase basis. 2011 federal tax form 1040 Others, such as earlier casualty losses and depreciation deductions, decrease basis. 2011 federal tax form 1040 When you add the increases to the basis and subtract the decreases from the basis, the result is your adjusted basis. 2011 federal tax form 1040 See Publication 551 for more information on figuring the basis of your property. 2011 federal tax form 1040 Insurance and Other Reimbursements If you receive an insurance or other type of reimbursement, you must subtract the reimbursement when you figure your loss. 2011 federal tax form 1040 You do not have a casualty or theft loss to the extent you are reimbursed. 2011 federal tax form 1040 If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. 2011 federal tax form 1040 You must reduce your loss even if you do not receive payment until a later tax year. 2011 federal tax form 1040 See Reimbursement Received After Deducting Loss , later. 2011 federal tax form 1040 Failure to file a claim for reimbursement. 2011 federal tax form 1040   If your property is covered by insurance, you must file a timely insurance claim for reimbursement of your loss. 2011 federal tax form 1040 Otherwise, you cannot deduct this loss as a casualty or theft. 2011 federal tax form 1040 The portion of the loss usually not covered by insurance (for example, a deductible) is not subject to this rule. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 You have a car insurance policy with a $1,000 deductible. 2011 federal tax form 1040 Because your insurance did not cover the first $1,000 of an auto collision, the $1,000 would be deductible (subject to the $100 and 10% rules, discussed later). 2011 federal tax form 1040 This is true, even if you do not file an insurance claim, because your insurance policy would never have reimbursed you for the deductible. 2011 federal tax form 1040 Types of Reimbursements The most common type of reimbursement is an insurance payment for your stolen or damaged property. 2011 federal tax form 1040 Other types of reimbursements are discussed next. 2011 federal tax form 1040 Also see the Instructions for Form 4684. 2011 federal tax form 1040 Employer's emergency disaster fund. 2011 federal tax form 1040   If you receive money from your employer's emergency disaster fund and you must use that money to rehabilitate or replace property on which you are claiming a casualty loss deduction, you must take that money into consideration in computing the casualty loss deduction. 2011 federal tax form 1040 Take into consideration only the amount you used to replace your destroyed or damaged property. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 Your home was extensively damaged by a tornado. 2011 federal tax form 1040 Your loss after reimbursement from your insurance company was $10,000. 2011 federal tax form 1040 Your employer set up a disaster relief fund for its employees. 2011 federal tax form 1040 Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. 2011 federal tax form 1040 You received $4,000 from the fund and spent the entire amount on repairs to your home. 2011 federal tax form 1040 In figuring your casualty loss, you must reduce your unreimbursed loss ($10,000) by the $4,000 you received from your employer's fund. 2011 federal tax form 1040 Your casualty loss before applying the deduction limits (discussed later) is $6,000. 2011 federal tax form 1040 Cash gifts. 2011 federal tax form 1040   If you receive excludable cash gifts as a disaster victim and there are no limits on how you can use the money, you do not reduce your casualty loss by these excludable cash gifts. 2011 federal tax form 1040 This applies even if you use the money to pay for repairs to property damaged in the disaster. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 Your home was damaged by a hurricane. 2011 federal tax form 1040 Relatives and neighbors made cash gifts to you that were excludable from your income. 2011 federal tax form 1040 You used part of the cash gifts to pay for repairs to your home. 2011 federal tax form 1040 There were no limits or restrictions on how you could use the cash gifts. 2011 federal tax form 1040 It was an excludable gift, so the money you received and used to pay for repairs to your home does not reduce your casualty loss on the damaged home. 2011 federal tax form 1040 Insurance payments for living expenses. 2011 federal tax form 1040   You do not reduce your casualty loss by insurance payments you receive to cover living expenses in either of the following situations. 2011 federal tax form 1040 You lose the use of your main home because of a casualty. 2011 federal tax form 1040 Government authorities do not allow you access to your main home because of a casualty or threat of one. 2011 federal tax form 1040 Inclusion in income. 2011 federal tax form 1040   If these insurance payments are more than the temporary increase in your living expenses, you must include the excess in your income. 2011 federal tax form 1040 Report this amount on Form 1040, line 21. 2011 federal tax form 1040 However, if the casualty occurs in a federally declared disaster area, none of the insurance payments are taxable. 2011 federal tax form 1040 See Qualified disaster relief payments , later, under Disaster Area Losses. 2011 federal tax form 1040   A temporary increase in your living expenses is the difference between the actual living expenses you and your family incurred during the period you could not use your home and your normal living expenses for that period. 2011 federal tax form 1040 Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. 2011 federal tax form 1040 Generally, these expenses include the amounts you pay for the following. 2011 federal tax form 1040 Renting suitable housing. 2011 federal tax form 1040 Transportation. 2011 federal tax form 1040 Food. 2011 federal tax form 1040 Utilities. 2011 federal tax form 1040 Miscellaneous services. 2011 federal tax form 1040 Normal living expenses consist of these same expenses that you would have incurred but did not because of the casualty or the threat of one. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 As a result of a fire, you vacated your apartment for a month and moved to a motel. 2011 federal tax form 1040 You normally pay $525 a month for rent. 2011 federal tax form 1040 None was charged for the month the apartment was vacated. 2011 federal tax form 1040 Your motel rent for this month was $1,200. 2011 federal tax form 1040 You normally pay $200 a month for food. 2011 federal tax form 1040 Your food expenses for the month you lived in the motel were $400. 2011 federal tax form 1040 You received $1,100 from your insurance company to cover your living expenses. 2011 federal tax form 1040 You determine the payment you must include in income as follows. 2011 federal tax form 1040 1. 2011 federal tax form 1040 Insurance payment for living expenses $1,100 2. 2011 federal tax form 1040 Actual expenses during the month you are unable to use your home because of the fire $1,600   3. 2011 federal tax form 1040 Normal living expenses 725   4. 2011 federal tax form 1040 Temporary increase in living expenses: Subtract line 3  from line 2 875 5. 2011 federal tax form 1040 Amount of payment includible in income: Subtract line 4 from line 1 $ 225 Tax year of inclusion. 2011 federal tax form 1040   You include the taxable part of the insurance payment in income for the year you regain the use of your main home or, if later, for the year you receive the taxable part of the insurance payment. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 Your main home was destroyed by a tornado in August 2011. 2011 federal tax form 1040 You regained use of your home in November 2012. 2011 federal tax form 1040 The insurance payments you received in 2011 and 2012 were $1,500 more than the temporary increase in your living expenses during those years. 2011 federal tax form 1040 You include this amount in income on your 2012 Form 1040. 2011 federal tax form 1040 If, in 2013, you receive further payments to cover the living expenses you had in 2011 and 2012, you must include those payments in income on your 2013 Form 1040. 2011 federal tax form 1040 Disaster relief. 2011 federal tax form 1040   Food, medical supplies, and other forms of assistance you receive do not reduce your casualty loss, unless they are replacements for lost or destroyed property. 2011 federal tax form 1040 Table 2. 2011 federal tax form 1040 Deduction Limit Rules for Personal-Use and Employee Property       $100 Rule 10% Rule 2% Rule General Application You must reduce each casualty or theft loss by $100 when figuring your deduction. 2011 federal tax form 1040 Apply this rule to personal-use property after you have figured the amount of your loss. 2011 federal tax form 1040 You must reduce your total casualty or theft loss by 10% of your adjusted gross income. 2011 federal tax form 1040 Apply this rule to personal-use property after you reduce each loss by $100 (the $100 rule). 2011 federal tax form 1040 You must reduce your total casualty or theft loss by 2% of your adjusted gross income. 2011 federal tax form 1040 Apply this rule to property you used in performing services as an employee after you have figured the amount of your loss and added it to your job expenses and most other miscellaneous itemized deductions. 2011 federal tax form 1040 Single Event Apply this rule only once, even if many pieces of property are affected. 2011 federal tax form 1040 Apply this rule only once, even if many pieces of property are affected. 2011 federal tax form 1040 Apply this rule only once, even if many pieces of property are affected. 2011 federal tax form 1040 More Than One Event Apply to the loss from each event. 2011 federal tax form 1040 Apply to the total of all your losses from all events. 2011 federal tax form 1040 Apply to the total of all your losses from all events. 2011 federal tax form 1040 More Than One Person— With Loss From the   Same Event  (other than a married couple  filing jointly) Apply separately to each person. 2011 federal tax form 1040 Apply separately to each person. 2011 federal tax form 1040 Apply separately to each person. 2011 federal tax form 1040 Married Couple—  With Loss From the  Same Event Filing Joint Return Apply as if you were one person. 2011 federal tax form 1040 Apply as if you were one person. 2011 federal tax form 1040 Apply as if you were one person. 2011 federal tax form 1040 Filing Separate Return Apply separately to each spouse. 2011 federal tax form 1040 Apply separately to each spouse. 2011 federal tax form 1040 Apply separately to each spouse. 2011 federal tax form 1040 More Than One Owner (other than a married couple filing jointly) Apply separately to each owner of jointly owned property. 2011 federal tax form 1040 Apply separately to each owner of jointly owned property. 2011 federal tax form 1040 Apply separately to each owner of jointly owned property. 2011 federal tax form 1040    Qualified disaster relief payments you receive for expenses you incurred as a result of a federally declared disaster, are not taxable income to you. 2011 federal tax form 1040 For more information, see Qualified disaster relief payments under Disaster Area Losses, later. 2011 federal tax form 1040   Disaster unemployment assistance payments are unemployment benefits that are taxable. 2011 federal tax form 1040   Generally, disaster relief grants received under the Robert T. 2011 federal tax form 1040 Stafford Disaster Relief and Emergency Assistance Act are not included in your income. 2011 federal tax form 1040 See Federal disaster relief grants , later, under Disaster Area Losses. 2011 federal tax form 1040 Loan proceeds. 2011 federal tax form 1040   Do not reduce your casualty loss by loan proceeds you use to rehabilitate or replace property on which you are claiming a casualty loss deduction. 2011 federal tax form 1040 If you have a federal loan that is canceled (forgiven), see Federal loan canceled , later, under Disaster Area Losses. 2011 federal tax form 1040 Reimbursement Received After Deducting Loss If you figured your casualty or theft loss using the amount of your expected reimbursement, you may have to adjust your tax return for the tax year in which you get your actual reimbursement. 2011 federal tax form 1040 This section explains the adjustment you may have to make. 2011 federal tax form 1040 Actual reimbursement less than expected. 2011 federal tax form 1040   If you later receive less reimbursement than you expected, include that difference as a loss with your other losses (if any) on your return for the year in which you can reasonably expect no more reimbursement. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 Your personal car had a FMV of $2,000 when it was destroyed in a collision with another car in 2012. 2011 federal tax form 1040 The accident was due to the negligence of the other driver. 2011 federal tax form 1040 At the end of 2012, there was a reasonable prospect that the owner of the other car would reimburse you in full. 2011 federal tax form 1040 You did not have a deductible loss in 2012. 2011 federal tax form 1040 In January 2013, the court awards you a judgment of $2,000. 2011 federal tax form 1040 However, in July it becomes apparent that you will be unable to collect any amount from the other driver. 2011 federal tax form 1040 Since this is your only casualty or theft loss, you can deduct the loss in 2013 that is figured by applying the Deduction Limits (discussed later). 2011 federal tax form 1040 Actual reimbursement more than expected. 2011 federal tax form 1040   If you later receive more reimbursement than you expected, after you have claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. 2011 federal tax form 1040 However, if any part of the original deduction did not reduce your tax for the earlier year, do not include that part of the reimbursement in your income. 2011 federal tax form 1040 You do not refigure your tax for the year you claimed the deduction. 2011 federal tax form 1040 See Recoveries in Publication 525 to find out how much extra reimbursement to include in income. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 In 2012, a hurricane destroyed your motorboat. 2011 federal tax form 1040 Your loss was $3,000, and you estimated that your insurance would cover $2,500 of it. 2011 federal tax form 1040 You did not itemize deductions on your 2012 return, so you could not deduct the loss. 2011 federal tax form 1040 When the insurance company reimburses you for the loss, you do not report any of the reimbursement as income. 2011 federal tax form 1040 This is true even if it is for the full $3,000 because you did not deduct the loss on your 2012 return. 2011 federal tax form 1040 The loss did not reduce your tax. 2011 federal tax form 1040    If the total of all the reimbursements you receive is more than your adjusted basis in the destroyed or stolen property, you will have a gain on the casualty or theft. 2011 federal tax form 1040 If you have already taken a deduction for a loss and you receive the reimbursement in a later year, you may have to include the gain in your income for the later year. 2011 federal tax form 1040 Include the gain as ordinary income up to the amount of your deduction that reduced your tax for the earlier year. 2011 federal tax form 1040 You may be able to postpone reporting any remaining gain as explained under Postponement of Gain, later. 2011 federal tax form 1040 Actual reimbursement same as expected. 2011 federal tax form 1040   If you receive exactly the reimbursement you expected to receive, you do not have to include any of the reimbursement in your income and you cannot deduct any additional loss. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 In December 2013, you had a collision while driving your personal car. 2011 federal tax form 1040 Repairs to the car cost $950. 2011 federal tax form 1040 You had $100 deductible collision insurance. 2011 federal tax form 1040 Your insurance company agreed to reimburse you for the rest of the damage. 2011 federal tax form 1040 Because you expected a reimbursement from the insurance company, you did not have a casualty loss deduction in 2013. 2011 federal tax form 1040 Due to the $100 rule, you cannot deduct the $100 you paid as the deductible. 2011 federal tax form 1040 When you receive the $850 from the insurance company in 2014, do not report it as income. 2011 federal tax form 1040 Deduction Limits After you have figured your casualty or theft loss, you must figure how much of the loss you can deduct. 2011 federal tax form 1040 The deduction for casualty and theft losses of employee property and personal-use property is limited. 2011 federal tax form 1040 A loss on employee property is subject to the 2% rule, discussed next. 2011 federal tax form 1040 With certain exceptions, a loss on property you own for your personal use is subject to the $100 and 10% rules, discussed later. 2011 federal tax form 1040 The 2%, $100, and 10% rules are also summarized in Table 2 . 2011 federal tax form 1040 Losses on business property (other than employee property) and income-producing property are not subject to these rules. 2011 federal tax form 1040 However, if your casualty or theft loss involved a home you used for business or rented out, your deductible loss may be limited. 2011 federal tax form 1040 See the Instructions for Form 4684, Section B. 2011 federal tax form 1040 If the casualty or theft loss involved property used in a passive activity, see Form 8582, Passive Activity Loss Limitations, and its instructions. 2011 federal tax form 1040 2% Rule The casualty and theft loss deduction for employee property, when added to your job expenses and most other miscellaneous itemized deductions on Schedule A (Form 1040) or Form 1040NR, Schedule A, must be reduced by 2% of your adjusted gross income. 2011 federal tax form 1040 Employee property is property used in performing services as an employee. 2011 federal tax form 1040 $100 Rule After you have figured your casualty or theft loss on personal-use property, as discussed earlier, you must reduce that loss by $100. 2011 federal tax form 1040 This reduction applies to each total casualty or theft loss. 2011 federal tax form 1040 It does not matter how many pieces of property are involved in an event. 2011 federal tax form 1040 Only a single $100 reduction applies. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 You have $750 deductible collision insurance on your car. 2011 federal tax form 1040 The car is damaged in a collision. 2011 federal tax form 1040 The insurance company pays you for the damage minus the $750 deductible. 2011 federal tax form 1040 The amount of the casualty loss is based solely on the deductible. 2011 federal tax form 1040 The casualty loss is $650 ($750 − $100) because the first $100 of a casualty loss on personal-use property is not deductible. 2011 federal tax form 1040 Single event. 2011 federal tax form 1040   Generally, events closely related in origin cause a single casualty. 2011 federal tax form 1040 It is a single casualty when the damage is from two or more closely related causes, such as wind and flood damage caused by the same storm. 2011 federal tax form 1040 A single casualty may also damage two or more pieces of property, such as a hailstorm that damages both your home and your car parked in your driveway. 2011 federal tax form 1040 Example 1. 2011 federal tax form 1040 A thunderstorm destroyed your pleasure boat. 2011 federal tax form 1040 You also lost some boating equipment in the storm. 2011 federal tax form 1040 Your loss was $5,000 on the boat and $1,200 on the equipment. 2011 federal tax form 1040 Your insurance company reimbursed you $4,500 for the damage to your boat. 2011 federal tax form 1040 You had no insurance coverage on the equipment. 2011 federal tax form 1040 Your casualty loss is from a single event and the $100 rule applies once. 2011 federal tax form 1040 Figure your loss before applying the 10% rule (discussed later) as follows. 2011 federal tax form 1040     Boat Equipment 1. 2011 federal tax form 1040 Loss $5,000 $1,200 2. 2011 federal tax form 1040 Subtract insurance 4,500 -0- 3. 2011 federal tax form 1040 Loss after reimbursement $ 500 $1,200 4. 2011 federal tax form 1040 Total loss $1,700 5. 2011 federal tax form 1040 Subtract $100 100 6. 2011 federal tax form 1040 Loss before 10% rule $1,600 Example 2. 2011 federal tax form 1040 Thieves broke into your home in January and stole a ring and a fur coat. 2011 federal tax form 1040 You had a loss of $200 on the ring and $700 on the coat. 2011 federal tax form 1040 This is a single theft. 2011 federal tax form 1040 The $100 rule applies to the total $900 loss. 2011 federal tax form 1040 Example 3. 2011 federal tax form 1040 In September, hurricane winds blew the roof off your home. 2011 federal tax form 1040 Flood waters caused by the hurricane further damaged your home and destroyed your furniture and personal car. 2011 federal tax form 1040 This is considered a single casualty. 2011 federal tax form 1040 The $100 rule is applied to your total loss from the flood waters and the wind. 2011 federal tax form 1040 More than one loss. 2011 federal tax form 1040   If you have more than one casualty or theft loss during your tax year, you must reduce each loss by $100. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 Your family car was damaged in an accident in January. 2011 federal tax form 1040 Your loss after the insurance reimbursement was $75. 2011 federal tax form 1040 In February, your car was damaged in another accident. 2011 federal tax form 1040 This time your loss after the insurance reimbursement was $90. 2011 federal tax form 1040 Apply the $100 rule to each separate casualty loss. 2011 federal tax form 1040 Since neither accident resulted in a loss of over $100, you are not entitled to any deduction for these accidents. 2011 federal tax form 1040 More than one person. 2011 federal tax form 1040   If two or more individuals (other than a husband and wife filing a joint return) have losses from the same casualty or theft, the $100 rule applies separately to each individual. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 A fire damaged your house and also damaged the personal property of your house guest. 2011 federal tax form 1040 You must reduce your loss by $100. 2011 federal tax form 1040 Your house guest must reduce his or her loss by $100. 2011 federal tax form 1040 Married taxpayers. 2011 federal tax form 1040   If you and your spouse file a joint return, you are treated as one individual in applying the $100 rule. 2011 federal tax form 1040 It does not matter whether you own the property jointly or separately. 2011 federal tax form 1040   If you and your spouse have a casualty or theft loss and you file separate returns, each of you must reduce your loss by $100. 2011 federal tax form 1040 This is true even if you own the property jointly. 2011 federal tax form 1040 If one spouse owns the property, only that spouse can figure a loss deduction on a separate return. 2011 federal tax form 1040   If the casualty or theft loss is on property you own as tenants by the entirety, each of you can figure your deduction on only one-half of the loss on separate returns. 2011 federal tax form 1040 Neither of you can figure your deduction on the entire loss on a separate return. 2011 federal tax form 1040 Each of you must reduce the loss by $100. 2011 federal tax form 1040 More than one owner. 2011 federal tax form 1040   If two or more individuals (other than a husband and wife filing a joint return) have a loss on property jointly owned, the $100 rule applies separately to each. 2011 federal tax form 1040 For example, if two sisters live together in a home they own jointly and they have a casualty loss on the home, the $100 rule applies separately to each sister. 2011 federal tax form 1040 10% Rule You must reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. 2011 federal tax form 1040 Apply this rule after you reduce each loss by $100. 2011 federal tax form 1040 For more information, see the Form 4684 instructions. 2011 federal tax form 1040 If you have both gains and losses from casualties or thefts, see Gains and losses , later in this discussion. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 In June, you discovered that your house had been burglarized. 2011 federal tax form 1040 Your loss after insurance reimbursement was $2,000. 2011 federal tax form 1040 Your adjusted gross income for the year you discovered the theft is $29,500. 2011 federal tax form 1040 Figure your theft loss as follows. 2011 federal tax form 1040 1. 2011 federal tax form 1040 Loss after insurance $2,000 2. 2011 federal tax form 1040 Subtract $100 100 3. 2011 federal tax form 1040 Loss after $100 rule $1,900 4. 2011 federal tax form 1040 Subtract 10% of $29,500 AGI $2,950 5. 2011 federal tax form 1040 Theft loss deduction $-0- You do not have a theft loss deduction because your loss ($1,900) is less than 10% of your adjusted gross income ($2,950). 2011 federal tax form 1040 More than one loss. 2011 federal tax form 1040   If you have more than one casualty or theft loss during your tax year, reduce each loss by any reimbursement and by $100. 2011 federal tax form 1040 Then you must reduce the total of all your losses by 10% of your adjusted gross income. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 In March, you had a car accident that totally destroyed your car. 2011 federal tax form 1040 You did not have collision insurance on your car, so you did not receive any insurance reimbursement. 2011 federal tax form 1040 Your loss on the car was $1,800. 2011 federal tax form 1040 In November, a fire damaged your basement and totally destroyed the furniture, washer, dryer, and other items you had stored there. 2011 federal tax form 1040 Your loss on the basement items after reimbursement was $2,100. 2011 federal tax form 1040 Your adjusted gross income for the year that the accident and fire occurred is $25,000. 2011 federal tax form 1040 You figure your casualty loss deduction as follows. 2011 federal tax form 1040     Car Basement 1. 2011 federal tax form 1040 Loss $1,800 $2,100 2. 2011 federal tax form 1040 Subtract $100 per incident 100 100 3. 2011 federal tax form 1040 Loss after $100 rule $1,700 $2,000 4. 2011 federal tax form 1040 Total loss $3,700 5. 2011 federal tax form 1040 Subtract 10% of $25,000 AGI 2,500 6. 2011 federal tax form 1040 Casualty loss deduction $1,200 Married taxpayers. 2011 federal tax form 1040   If you and your spouse file a joint return, you are treated as one individual in applying the 10% rule. 2011 federal tax form 1040 It does not matter if you own the property jointly or separately. 2011 federal tax form 1040   If you file separate returns, the 10% rule applies to each return on which a loss is claimed. 2011 federal tax form 1040 More than one owner. 2011 federal tax form 1040   If two or more individuals (other than husband and wife filing a joint return) have a loss on property that is owned jointly, the 10% rule applies separately to each. 2011 federal tax form 1040 Gains and losses. 2011 federal tax form 1040   If you have casualty or theft gains as well as losses to personal-use property, you must compare your total gains to your total losses. 2011 federal tax form 1040 Do this after you have reduced each loss by any reimbursements and by $100 but before you have reduced the losses by 10% of your adjusted gross income. 2011 federal tax form 1040 Casualty or theft gains do not include gains you choose to postpone. 2011 federal tax form 1040 See Postponement of Gain, later. 2011 federal tax form 1040 Losses more than gains. 2011 federal tax form 1040   If your losses are more than your recognized gains, subtract your gains from your losses and reduce the result by 10% of your adjusted gross income. 2011 federal tax form 1040 The rest, if any, is your deductible loss from personal-use property. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 Your theft loss after reducing it by reimbursements and by $100 is $2,700. 2011 federal tax form 1040 Your casualty gain is $700. 2011 federal tax form 1040 Your loss is more than your gain, so you must reduce your $2,000 net loss ($2,700 − $700) by 10% of your adjusted gross income. 2011 federal tax form 1040 Gains more than losses. 2011 federal tax form 1040   If your recognized gains are more than your losses, subtract your losses from your gains. 2011 federal tax form 1040 The difference is treated as a capital gain and must be reported on Schedule D (Form 1040). 2011 federal tax form 1040 The 10% rule does not apply to your gains. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 Your theft loss is $600 after reducing it by reimbursements and by $100. 2011 federal tax form 1040 Your casualty gain is $1,600. 2011 federal tax form 1040 Because your gain is more than your loss, you must report the $1,000 net gain ($1,600 − $600) on Schedule D (Form 1040). 2011 federal tax form 1040 More information. 2011 federal tax form 1040   For information on how to figure recognized gains, see Figuring a Gain , later. 2011 federal tax form 1040 Figuring the Deduction Generally, you must figure your loss separately for each item stolen, damaged, or destroyed. 2011 federal tax form 1040 However, a special rule applies to real property you own for personal use. 2011 federal tax form 1040 Real property. 2011 federal tax form 1040   In figuring a loss to real estate you own for personal use, all improvements (such as buildings and ornamental trees and the land containing the improvements) are considered together. 2011 federal tax form 1040 Example 1. 2011 federal tax form 1040 In June, a fire destroyed your lakeside cottage, which cost $144,800 (including $14,500 for the land) several years ago. 2011 federal tax form 1040 (Your land was not damaged. 2011 federal tax form 1040 ) This was your only casualty or theft loss for the year. 2011 federal tax form 1040 The FMV of the property immediately before the fire was $180,000 ($145,000 for the cottage and $35,000 for the land). 2011 federal tax form 1040 The FMV immediately after the fire was $35,000 (value of the land). 2011 federal tax form 1040 You collected $130,000 from the insurance company. 2011 federal tax form 1040 Your adjusted gross income for the year the fire occurred is $80,000. 2011 federal tax form 1040 Your deduction for the casualty loss is $6,700, figured in the following manner. 2011 federal tax form 1040 1. 2011 federal tax form 1040 Adjusted basis of the entire property (cost in this example) $144,800 2. 2011 federal tax form 1040 FMV of entire property  before fire $180,000 3. 2011 federal tax form 1040 FMV of entire property after fire 35,000 4. 2011 federal tax form 1040 Decrease in FMV of entire property (line 2 − line 3) $145,000 5. 2011 federal tax form 1040 Loss (smaller of line 1 or line 4) $144,800 6. 2011 federal tax form 1040 Subtract insurance 130,000 7. 2011 federal tax form 1040 Loss after reimbursement $14,800 8. 2011 federal tax form 1040 Subtract $100 100 9. 2011 federal tax form 1040 Loss after $100 rule $14,700 10. 2011 federal tax form 1040 Subtract 10% of $80,000 AGI 8,000 11. 2011 federal tax form 1040 Casualty loss deduction $ 6,700 Example 2. 2011 federal tax form 1040 You bought your home a few years ago. 2011 federal tax form 1040 You paid $150,000 ($10,000 for the land and $140,000 for the house). 2011 federal tax form 1040 You also spent an additional $2,000 for landscaping. 2011 federal tax form 1040 This year a fire destroyed your home. 2011 federal tax form 1040 The fire also damaged the shrubbery and trees in your yard. 2011 federal tax form 1040 The fire was your only casualty or theft loss this year. 2011 federal tax form 1040 Competent appraisers valued the property as a whole at $175,000 before the fire, but only $50,000 after the fire. 2011 federal tax form 1040 Shortly after the fire, the insurance company paid you $95,000 for the loss. 2011 federal tax form 1040 Your adjusted gross income for this year is $70,000. 2011 federal tax form 1040 You figure your casualty loss deduction as follows. 2011 federal tax form 1040 1. 2011 federal tax form 1040 Adjusted basis of the entire property (cost of land, building, and landscaping) $152,000 2. 2011 federal tax form 1040 FMV of entire property  before fire $175,000 3. 2011 federal tax form 1040 FMV of entire property after fire 50,000 4. 2011 federal tax form 1040 Decrease in FMV of entire property (line 2 − line 3) $125,000 5. 2011 federal tax form 1040 Loss (smaller of line 1 or line 4) $125,000 6. 2011 federal tax form 1040 Subtract insurance 95,000 7. 2011 federal tax form 1040 Loss after reimbursement $30,000 8. 2011 federal tax form 1040 Subtract $100 100 9. 2011 federal tax form 1040 Loss after $100 rule $29,900 10. 2011 federal tax form 1040 Subtract 10% of $70,000 AGI 7,000 11. 2011 federal tax form 1040 Casualty loss deduction $ 22,900 Personal property. 2011 federal tax form 1040   Personal property is any property that is not real property. 2011 federal tax form 1040 If your personal property is stolen or is damaged or destroyed by a casualty, you must figure your loss separately for each item of property. 2011 federal tax form 1040 Then combine these separate losses to figure the total loss. 2011 federal tax form 1040 Reduce the total loss by $100 and 10% of your adjusted gross income to figure the loss deduction. 2011 federal tax form 1040 Example 1. 2011 federal tax form 1040 In August, a storm destroyed your pleasure boat, which cost $18,500. 2011 federal tax form 1040 This was your only casualty or theft loss for the year. 2011 federal tax form 1040 Its FMV immediately before the storm was $17,000. 2011 federal tax form 1040 You had no insurance, but were able to salvage the motor of the boat and sell it for $200. 2011 federal tax form 1040 Your adjusted gross income for the year the casualty occurred is $70,000. 2011 federal tax form 1040 Although the motor was sold separately, it is part of the boat and not a separate item of property. 2011 federal tax form 1040 You figure your casualty loss deduction as follows. 2011 federal tax form 1040 1. 2011 federal tax form 1040 Adjusted basis (cost in this example) $18,500 2. 2011 federal tax form 1040 FMV before storm $17,000 3. 2011 federal tax form 1040 FMV after storm 200 4. 2011 federal tax form 1040 Decrease in FMV  (line 2 − line 3) $16,800 5. 2011 federal tax form 1040 Loss (smaller of line 1 or line 4) $16,800 6. 2011 federal tax form 1040 Subtract insurance -0- 7. 2011 federal tax form 1040 Loss after reimbursement $16,800 8. 2011 federal tax form 1040 Subtract $100 100 9. 2011 federal tax form 1040 Loss after $100 rule $16,700 10. 2011 federal tax form 1040 Subtract 10% of $70,000 AGI 7,000 11. 2011 federal tax form 1040 Casualty loss deduction $ 9,700 Example 2. 2011 federal tax form 1040 In June, you were involved in an auto accident that totally destroyed your personal car and your antique pocket watch. 2011 federal tax form 1040 You had bought the car for $30,000. 2011 federal tax form 1040 The FMV of the car just before the accident was $17,500. 2011 federal tax form 1040 Its FMV just after the accident was $180 (scrap value). 2011 federal tax form 1040 Your insurance company reimbursed you $16,000. 2011 federal tax form 1040 Your watch was not insured. 2011 federal tax form 1040 You had purchased it for $250. 2011 federal tax form 1040 Its FMV just before the accident was $500. 2011 federal tax form 1040 Your adjusted gross income for the year the accident occurred is $97,000. 2011 federal tax form 1040 Your casualty loss deduction is zero, figured as follows. 2011 federal tax form 1040     Car Watch 1. 2011 federal tax form 1040 Adjusted basis (cost) $30,000 $250 2. 2011 federal tax form 1040 FMV before accident $17,500 $500 3. 2011 federal tax form 1040 FMV after accident 180 -0- 4. 2011 federal tax form 1040 Decrease in FMV (line 2 − line 3) $17,320 $500 5. 2011 federal tax form 1040 Loss (smaller of line 1 or line 4) $17,320 $250 6. 2011 federal tax form 1040 Subtract insurance 16,000 -0- 7. 2011 federal tax form 1040 Loss after reimbursement $1,320 $250 8. 2011 federal tax form 1040 Total loss $1,570 9. 2011 federal tax form 1040 Subtract $100 100 10. 2011 federal tax form 1040 Loss after $100 rule $1,470 11. 2011 federal tax form 1040 Subtract 10% of $97,000 AGI 9,700 12. 2011 federal tax form 1040 Casualty loss deduction $ -0- Both real and personal properties. 2011 federal tax form 1040   When a casualty involves both real and personal properties, you must figure the loss separately for each type of property. 2011 federal tax form 1040 However, you apply a single $100 reduction to the total loss. 2011 federal tax form 1040 Then, you apply the 10% rule to figure the casualty loss deduction. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 In July, a hurricane damaged your home, which cost you $164,000 including land. 2011 federal tax form 1040 The FMV of the property (both building and land) immediately before the storm was $170,000 and its FMV immediately after the storm was $100,000. 2011 federal tax form 1040 Your household furnishings were also damaged. 2011 federal tax form 1040 You separately figured the loss on each damaged household item and arrived at a total loss of $600. 2011 federal tax form 1040 You collected $50,000 from the insurance company for the damage to your home, but your household furnishings were not insured. 2011 federal tax form 1040 Your adjusted gross income for the year the hurricane occurred is $65,000. 2011 federal tax form 1040 You figure your casualty loss deduction from the hurricane in the following manner. 2011 federal tax form 1040 1. 2011 federal tax form 1040 Adjusted basis of real property (cost in this example) $164,000 2. 2011 federal tax form 1040 FMV of real property before hurricane $170,000 3. 2011 federal tax form 1040 FMV of real property after hurricane 100,000 4. 2011 federal tax form 1040 Decrease in FMV of real property (line 2 − line 3) $70,000 5. 2011 federal tax form 1040 Loss on real property (smaller of line 1 or line 4) $70,000 6. 2011 federal tax form 1040 Subtract insurance 50,000 7. 2011 federal tax form 1040 Loss on real property after reimbursement $20,000 8. 2011 federal tax form 1040 Loss on furnishings $600 9. 2011 federal tax form 1040 Subtract insurance -0- 10. 2011 federal tax form 1040 Loss on furnishings after reimbursement $600 11. 2011 federal tax form 1040 Total loss (line 7 plus line 10) $20,600 12. 2011 federal tax form 1040 Subtract $100 100 13. 2011 federal tax form 1040 Loss after $100 rule $20,500 14. 2011 federal tax form 1040 Subtract 10% of $65,000 AGI 6,500 15. 2011 federal tax form 1040 Casualty loss deduction $14,000 Property used partly for business and partly for personal purposes. 2011 federal tax form 1040   When property is used partly for personal purposes and partly for business or income-producing purposes, the casualty or theft loss deduction must be figured separately for the personal-use portion and for the business or income-producing portion. 2011 federal tax form 1040 You must figure each loss separately because the losses attributed to these two uses are figured in two different ways. 2011 federal tax form 1040 When figuring each loss, allocate the total cost or basis, the FMV before and after the casualty or theft loss, and the insurance or other reimbursement between the business and personal use of the property. 2011 federal tax form 1040 The $100 rule and the 10% rule apply only to the casualty or theft loss on the personal-use portion of the property. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 You own a building that you constructed on leased land. 2011 federal tax form 1040 You use half of the building for your business and you live in the other half. 2011 federal tax form 1040 The cost of the building was $400,000. 2011 federal tax form 1040 You made no further improvements or additions to it. 2011 federal tax form 1040 A flood in March damaged the entire building. 2011 federal tax form 1040 The FMV of the building was $380,000 immediately before the flood and $320,000 afterwards. 2011 federal tax form 1040 Your insurance company reimbursed you $40,000 for the flood damage. 2011 federal tax form 1040 Depreciation on the business part of the building before the flood totaled $24,000. 2011 federal tax form 1040 Your adjusted gross income for the year the flood occurred is $125,000. 2011 federal tax form 1040 You have a deductible business casualty loss of $10,000. 2011 federal tax form 1040 You do not have a deductible personal casualty loss because of the 10% rule. 2011 federal tax form 1040 You figure your loss as follows. 2011 federal tax form 1040     Business   Personal     Part   Part 1. 2011 federal tax form 1040 Cost (total $400,000) $200,000   $200,000 2. 2011 federal tax form 1040 Subtract depreciation 24,000   -0- 3. 2011 federal tax form 1040 Adjusted basis $176,000   $200,000 4. 2011 federal tax form 1040 FMV before flood (total $380,000) $190,000   $190,000 5. 2011 federal tax form 1040 FMV after flood (total $320,000) 160,000   160,000 6. 2011 federal tax form 1040 Decrease in FMV  (line 4 − line 5) $30,000   $30,000 7. 2011 federal tax form 1040 Loss (smaller of line 3 or line 6) $30,000   $30,000 8. 2011 federal tax form 1040 Subtract insurance 20,000   20,000 9. 2011 federal tax form 1040 Loss after reimbursement $10,000   $10,000 10. 2011 federal tax form 1040 Subtract $100 on personal-use property -0-   100 11. 2011 federal tax form 1040 Loss after $100 rule $10,000   $9,900 12. 2011 federal tax form 1040 Subtract 10% of $125,000 AGI on personal-use property -0-   12,500 13. 2011 federal tax form 1040 Deductible business loss $10,000     14. 2011 federal tax form 1040 Deductible personal loss $-0- Figuring a Gain If you receive an insurance payment or other reimbursement that is more than your adjusted basis in the destroyed, damaged, or stolen property, you have a gain from the casualty or theft. 2011 federal tax form 1040 Your gain is figured as follows. 2011 federal tax form 1040 The amount you receive (discussed next), minus Your adjusted basis in the property at the time of the casualty or theft. 2011 federal tax form 1040 See Adjusted Basis , earlier, for information on adjusted basis. 2011 federal tax form 1040 Even if the decrease in FMV of your property is smaller than the adjusted basis of your property, use your adjusted basis to figure the gain. 2011 federal tax form 1040 Amount you receive. 2011 federal tax form 1040   The amount you receive includes any money plus the value of any property you receive minus any expenses you have in obtaining reimbursement. 2011 federal tax form 1040 It also includes any reimbursement used to pay off a mortgage or other lien on the damaged, destroyed, or stolen property. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 A hurricane destroyed your personal residence and the insurance company awarded you $145,000. 2011 federal tax form 1040 You received $140,000 in cash. 2011 federal tax form 1040 The remaining $5,000 was paid directly to the holder of a mortgage on the property. 2011 federal tax form 1040 The amount you received includes the $5,000 reimbursement paid on the mortgage. 2011 federal tax form 1040 Main home destroyed. 2011 federal tax form 1040   If you have a gain because your main home was destroyed, you generally can exclude the gain from your income as if you had sold or exchanged your home. 2011 federal tax form 1040 You may be able to exclude up to $250,000 of the gain (up to $500,000 if married filing jointly). 2011 federal tax form 1040 To exclude a gain, you generally must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date it was destroyed. 2011 federal tax form 1040 For information on this exclusion, see Publication 523. 2011 federal tax form 1040 If your gain is more than the amount you can exclude, but you buy replacement property, you may be able to postpone reporting the excess gain. 2011 federal tax form 1040 See Postponement of Gain , later. 2011 federal tax form 1040 Reporting a gain. 2011 federal tax form 1040   You generally must report your gain as income in the year you receive the reimbursement. 2011 federal tax form 1040 However, you do not have to report your gain if you meet certain requirements and choose to postpone reporting the gain according to the rules explained under Postponement of Gain, next. 2011 federal tax form 1040   For information on how to report a gain, see How To Report Gains and Losses , later. 2011 federal tax form 1040    If you have a casualty or theft gain on personal-use property that you choose to postpone reporting (as explained next) and you also have another casualty or theft loss on personal-use property, do not consider the gain you are postponing when figuring your casualty or theft loss deduction. 2011 federal tax form 1040 See 10% Rule under Deduction Limits, earlier. 2011 federal tax form 1040 Postponement of Gain Do not report a gain if you receive reimbursement in the form of property similar or related in service or use to the destroyed or stolen property. 2011 federal tax form 1040 Your basis in the new property is generally the same as your adjusted basis in the property it replaces. 2011 federal tax form 1040 You must ordinarily report the gain on your stolen or destroyed property if you receive money or unlike property as reimbursement. 2011 federal tax form 1040 However, you can choose to postpone reporting the gain if you purchase property that is similar or related in service or use to the stolen or destroyed property within a specified replacement period, discussed later. 2011 federal tax form 1040 You also can choose to postpone reporting the gain if you purchase a controlling interest (at least 80%) in a corporation owning property that is similar or related in service or use to the property. 2011 federal tax form 1040 See Controlling interest in a corporation , later. 2011 federal tax form 1040 If you have a gain on damaged property, you can postpone reporting the gain if you spend the reimbursement to restore the property. 2011 federal tax form 1040 To postpone reporting all the gain, the cost of your replacement property must be at least as much as the reimbursement you receive. 2011 federal tax form 1040 If the cost of the replacement property is less than the reimbursement, you must include the gain in your income up to the amount of the unspent reimbursement. 2011 federal tax form 1040 Example. 2011 federal tax form 1040 In 1970, you bought an oceanfront cottage for your personal use at a cost of $18,000. 2011 federal tax form 1040 You made no further improvements or additions to it. 2011 federal tax form 1040 When a storm destroyed the cottage this January, the cottage was worth $250,000. 2011 federal tax form 1040 You received $146,000 from the insurance company in March. 2011 federal tax form 1040 You had a gain of $128,000 ($146,000 − $18,000). 2011 federal tax form 1040 You spent $144,000 to rebuild the cottage. 2011 federal tax form 1040 Since this is less than the insurance proceeds received, you must include $2,000 ($146,000 − $144,000) in your income. 2011 federal tax form 1040 Buying replacement property from a related person. 2011 federal tax form 1040   You cannot postpone reporting a gain from a casualty or theft if you buy the replacement property from a related person (discussed later). 2011 federal tax form 1040 This rule applies to the following taxpayers. 2011 federal tax form 1040 C corporations. 2011 federal tax form 1040 Partnerships in which more than 50% of the capital or profits interests is owned by C corporations. 2011 federal tax form 1040 All others (including individuals, partnerships — other than those in (2) — and S corporations) if the total realized gain for the tax year on all destroyed or stolen properties on which there are realized gains is more than $100,000. 2011 federal tax form 1040 For casualties and thefts described in (3) above, gains cannot be offset by any losses when determining whether the total gain is more than $100,000. 2011 federal tax form 1040 If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. 2011 federal tax form 1040 If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. 2011 federal tax form 1040 Exception. 2011 federal tax form 1040   This rule does not apply if the related person acquired the property from an unrelated person within the period of time allowed for replacing the destroyed or stolen property. 2011 federal tax form 1040 Related persons. 2011 federal tax form 1040   Under this rule, related persons include, for example, a parent and child, a brother and sister, a corporation and an individual who owns more than 50% of its outstanding stock, and two partnerships in which the same C corporations own more than 50% of the capital or profits interests. 2011 federal tax form 1040 For more information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. 2011 federal tax form 1040 Death of a taxpayer. 2011 federal tax form 1040   If a taxpayer dies after having a gain but before buying replacement property, the gain must be reported for the year in which the decedent realized the gain. 2011 federal tax form 1040 The executor of the estate or the person succeeding to the funds from the casualty or theft cannot postpone reporting the gain by buying replacement property. 2011 federal tax form 1040 Replacement Property You must buy replacement property for the specific purpose of replacing your destroyed or stolen property. 2011 federal tax form 1040 Property you acquire as a gift or inheritance does not qualify. 2011 federal tax form 1040 You do not have to use the same funds you receive as