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Amend 1040ez Tax Form

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Amend 1040ez Tax Form

Amend 1040ez tax form Publication 534 - Introductory Material Table of Contents Important Change for 1995 Introduction How To Use This Publication Important Change for 1995 Major changes to Publications 534 and 946. Amend 1040ez tax form  This publication, as well as Publication 946,How To Depreciate Property, has been changed. Amend 1040ez tax form Publication 534 has been shortened. Amend 1040ez tax form It no longer contains general information on MACRS and the section 179 deduction. Amend 1040ez tax form It contains a discussion of the accelerated cost recovery system (ACRS), the ACRS Percentage Tables, a discussion of other methods of depreciation, and a limited discussion of listed property. Amend 1040ez tax form We expanded Publication 946 by adding material taken from Publication 534. Amend 1040ez tax form We added more detail to the discussions of the section 179 deduction, the modified accelerated cost recovery system (MACRS), and listed property. Amend 1040ez tax form We replaced the partialMACRS Percentage Tables with the complete ones from Publication 534. Amend 1040ez tax form We also added the Table of Class Lives and Recovery Periods from Publication 534. Amend 1040ez tax form We made these changes to eliminate most of the duplication that existed in the two publications. Amend 1040ez tax form This will save money and make it easier for you to decide which publication you need. Amend 1040ez tax form Use this publication to figure depreciation on property you placed in service before 1987; use Publication 946 to figure depreciation on property you placed in service after 1986. Amend 1040ez tax form Introduction The law allows you to recover your cost in business or income-producing property through yearly tax deductions. Amend 1040ez tax form You do this by depreciating your property, that is, by deducting some of your cost on your tax return each year. Amend 1040ez tax form You can depreciate both tangible property, such as a car, building, or machinery, and certain intangible property, such as a copyright or a patent. Amend 1040ez tax form The amount you can deduct depends on: How much the property cost, When you began using it, How long it will take to recover your cost, and Which of several depreciation methods you use. Amend 1040ez tax form Depreciation defined. Amend 1040ez tax form   Depreciation is a loss in the value of property over the time the property is being used. Amend 1040ez tax form Events that can cause property to depreciate include wear and tear, age, deterioration, and obsolescence. Amend 1040ez tax form You can get back your cost of certain property, such as equipment you use in your business or property used for the production of income by taking deductions for depreciation. Amend 1040ez tax form Black's Law Dictionary Amortization. Amend 1040ez tax form   Amortization is similar to depreciation. Amend 1040ez tax form Using amortization, you can recover your cost or basis in certain property proportionately over a specific number of years or months. Amend 1040ez tax form Examples of costs you can amortize are the costs of starting a business, reforestation, and pollution control facilities. Amend 1040ez tax form You can find information on amortization inchapter 12 of Publication 535, Business Expenses. Amend 1040ez tax form Alternative minimum tax. Amend 1040ez tax form   If you use accelerated depreciation for real property, or personal property that is leased to others, you may be liable for the alternative minimum tax. Amend 1040ez tax form Accelerated depreciation is any method, that allows recovery at a faster rate in the earlier years than the straight line method. Amend 1040ez tax form For more information, you may wish to see the following: Form 6251, Alternative Minimum Tax-Individuals, and Publication 542, Tax Information on Corporations. Amend 1040ez tax form Ordering publications and forms. Amend 1040ez tax form   To order free publications and forms, 1-800-TAX-FORM (1-800-829-3676). Amend 1040ez tax form You can also write to the IRS Forms Distribution Center nearest you. Amend 1040ez tax form Check your income tax package for the address. Amend 1040ez tax form   If you have access to a personal computer and a modem, you can also get many forms and publications electronically. Amend 1040ez tax form See How To Get Forms and Publications in your income tax package for details. Amend 1040ez tax form Telephone help. Amend 1040ez tax form   You can call the IRS with your tax question Monday through Friday during regular business hours. Amend 1040ez tax form Check your telephone book for the local number or you can call1-800-829-1040. Amend 1040ez tax form Telephone help for hearing-impaired persons. Amend 1040ez tax form   If you have access to TDD equipment, you can call 1-800-829-4059 with your tax question or to order forms and publications. Amend 1040ez tax form See your tax package for the hours of operation. Amend 1040ez tax form How To Use This Publication This publication describes the kinds of property that can be depreciated and the methods used to figure depreciation on property placed in service before 1987. Amend 1040ez tax form It is divided into three chapters and contains an appendix. Amend 1040ez tax form Chapter 1 explains the rules for depreciating property under the Accelerated Cost Recovery System (ACRS). Amend 1040ez tax form Chapter 2 explains the rules for depreciating property first used before 1981. Amend 1040ez tax form Chapter 3 explains the rules for listed property. Amend 1040ez tax form Also this chapter defines listed property. Amend 1040ez tax form The appendix contains the ACRS Percentage Tables. 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The Amend 1040ez Tax Form

Amend 1040ez tax form 25. Amend 1040ez tax form   Nonbusiness Casualty and Theft Losses Table of Contents What's New Introduction Useful Items - You may want to see: CasualtyFamily pet. Amend 1040ez tax form Progressive deterioration. Amend 1040ez tax form Damage from corrosive drywall. Amend 1040ez tax form Theft Loss on Deposits Proof of Loss Figuring a LossDecrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Single Casualty on Multiple Properties Deduction Limits$100 Rule 10% Rule When To Report Gains and LossesDisaster Area Loss How To Report Gains and Losses What's New New Section C of Form 4684 for Ponzi-type investment schemes. Amend 1040ez tax form  Section C of Form 4684 is new for 2013. Amend 1040ez tax form You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. Amend 1040ez tax form Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Amend 1040ez tax form You do not need to complete Appendix A. Amend 1040ez tax form For details, see Losses from Ponzi-type investment schemes , in this chapter. Amend 1040ez tax form Introduction This chapter explains the tax treatment of personal (not business or investment related) casualty losses, theft losses, and losses on deposits. Amend 1040ez tax form The chapter also explains the following  topics. Amend 1040ez tax form How to figure the amount of your loss. Amend 1040ez tax form How to treat insurance and other reimbursements you receive. Amend 1040ez tax form The deduction limits. Amend 1040ez tax form When and how to report a casualty or theft. Amend 1040ez tax form Forms to file. Amend 1040ez tax form    When you have a casualty or theft, you have to file Form 4684. Amend 1040ez tax form You will also have to file one or more of the following forms. Amend 1040ez tax form Schedule A (Form 1040), Itemized Deductions Schedule D (Form 1040), Capital Gains and Losses Condemnations. Amend 1040ez tax form   For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Disposition of Assets. Amend 1040ez tax form Workbook for casualties and thefts. Amend 1040ez tax form    Publication 584 is available to help you make a list of your stolen or damaged personal-use property and figure your loss. Amend 1040ez tax form It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. Amend 1040ez tax form Business or investment-related losses. Amend 1040ez tax form   For information on a casualty or theft loss of business or income-producing property, see Publication 547, Casualties, Disasters, and Thefts. Amend 1040ez tax form Useful Items - You may want to see: Publication 544 Sales and Other Dispositions  of Assets 547 Casualties, Disasters, and   Thefts 584 Casualty, Disaster, and Theft   Loss Workbook (Personal-Use  Property) Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule D (Form 1040) Capital Gains and Losses 4684 Casualties and Thefts Casualty A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. Amend 1040ez tax form A sudden event is one that is swift, not gradual or progressive. Amend 1040ez tax form An unexpected event is one that is ordinarily unanticipated and unintended. Amend 1040ez tax form 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. Amend 1040ez tax form Deductible losses. Amend 1040ez tax form   Deductible casualty losses can result from a number of different causes, including the following. Amend 1040ez tax form Car accidents (but see Nondeductible losses , next, for exceptions). Amend 1040ez tax form Earthquakes. Amend 1040ez tax form Fires (but see Nondeductible losses , next, for exceptions). Amend 1040ez tax form Floods. Amend 1040ez tax form Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses in Publication 547. Amend 1040ez tax form Mine cave-ins. Amend 1040ez tax form Shipwrecks. Amend 1040ez tax form Sonic booms. Amend 1040ez tax form Storms, including hurricanes and tornadoes. Amend 1040ez tax form Terrorist attacks. Amend 1040ez tax form Vandalism. Amend 1040ez tax form Volcanic eruptions. Amend 1040ez tax form Nondeductible losses. Amend 1040ez tax form   A casualty loss is not deductible if the damage or destruction is caused by the following. Amend 1040ez tax form Accidentally breaking articles such as glassware or china under normal conditions. Amend 1040ez tax form A family pet (explained below). Amend 1040ez tax form A fire if you willfully set it or pay someone else to set it. Amend 1040ez tax form A car accident if your willful negligence or willful act caused it. Amend 1040ez tax form The same is true if the willful act or willful negligence of someone acting for you caused the accident. Amend 1040ez tax form Progressive deterioration (explained later). Amend 1040ez tax form Family pet. Amend 1040ez tax form   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. Amend 1040ez tax form Example. Amend 1040ez tax form Your antique oriental rug was damaged by your new puppy before it was housebroken. Amend 1040ez tax form Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss. Amend 1040ez tax form Progressive deterioration. Amend 1040ez tax form    Loss of property due to progressive deterioration is not deductible as a casualty loss. Amend 1040ez tax form This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. Amend 1040ez tax form The following are examples of damage due to progressive deterioration. Amend 1040ez tax form The steady weakening of a building due to normal wind and weather conditions. Amend 1040ez tax form The deterioration and damage to a water heater that bursts. Amend 1040ez tax form However, the rust and water damage to rugs and drapes caused by the bursting of a water heater does qualify as a casualty. Amend 1040ez tax form Most losses of property caused by droughts. Amend 1040ez tax form To be deductible, a drought-related loss generally must be incurred in a trade or business or in a transaction entered into for profit. Amend 1040ez tax form Termite or moth damage. Amend 1040ez tax form The damage or destruction of trees, shrubs, or other plants by a fungus, disease, insects, worms, or similar pests. Amend 1040ez tax form However, a sudden destruction due to an unexpected or unusual infestation of beetles or other insects may result in a casualty loss. Amend 1040ez tax form Damage from corrosive drywall. Amend 1040ez tax form   Under a special procedure, you may be able to claim a casualty loss deduction for amounts you paid to repair damage to your home and household appliances that resulted from corrosive drywall. Amend 1040ez tax form For details, see Publication 547. Amend 1040ez tax form Theft A theft is the taking and removing of money or property with the intent to deprive the owner of it. Amend 1040ez tax form The taking of property must be illegal under the laws of the state where it occurred and it must have been done with criminal intent. Amend 1040ez tax form You do not need to show a conviction for theft. Amend 1040ez tax form Theft includes the taking of money or property by the following means. Amend 1040ez tax form Blackmail. Amend 1040ez tax form Burglary. Amend 1040ez tax form Embezzlement. Amend 1040ez tax form Extortion. Amend 1040ez tax form Kidnapping for ransom. Amend 1040ez tax form Larceny. Amend 1040ez tax form Robbery. Amend 1040ez tax form The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. Amend 1040ez tax form Decline in market value of stock. Amend 1040ez tax form   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. Amend 1040ez tax form 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. Amend 1040ez tax form You report a capital loss on Schedule D (Form 1040). Amend 1040ez tax form For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. Amend 1040ez tax form Mislaid or lost property. Amend 1040ez tax form   The simple disappearance of money or property is not a theft. Amend 1040ez tax form 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. Amend 1040ez tax form Sudden, unexpected, and unusual events are defined earlier. Amend 1040ez tax form Example. Amend 1040ez tax form A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Amend 1040ez tax form The diamond falls from the ring and is never found. Amend 1040ez tax form The loss of the diamond is a casualty. Amend 1040ez tax form Losses from Ponzi-type investment schemes. Amend 1040ez tax form   If you had a loss from a Ponzi-type investment scheme, see: Revenue Ruling 2009-9, 2009-14 I. Amend 1040ez tax form R. Amend 1040ez tax form B. Amend 1040ez tax form 735 (available at www. Amend 1040ez tax form irs. Amend 1040ez tax form gov/irb/2009-14_IRB/ar07. Amend 1040ez tax form html). Amend 1040ez tax form Revenue Procedure 2009-20, 2009-14 I. Amend 1040ez tax form R. Amend 1040ez tax form B. Amend 1040ez tax form 749 (available at www. Amend 1040ez tax form irs. Amend 1040ez tax form gov/irb/2009-14_IRB/ar11. Amend 1040ez tax form html). Amend 1040ez tax form Revenue Procedure 2011-58, 2011-50 I. Amend 1040ez tax form R. Amend 1040ez tax form B. Amend 1040ez tax form 849 (available at www. Amend 1040ez tax form irs. Amend 1040ez tax form gov/irb/2011-50_IRB/ar11. Amend 1040ez tax form html). Amend 1040ez tax form 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. Amend 1040ez tax form Skip lines 19 to 27. Amend 1040ez tax form Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Amend 1040ez tax form You do not need to complete Appendix A. Amend 1040ez tax form For more information, see the above revenue ruling and revenue procedures, and the Instructions for Form 4684. Amend 1040ez tax form   If you choose not to use the procedures in Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate. Amend 1040ez tax form Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Amend 1040ez tax form If you incurred this type of loss, you can choose one of the following ways to deduct the loss. Amend 1040ez tax form As a casualty loss. Amend 1040ez tax form As an ordinary loss. Amend 1040ez tax form As a nonbusiness bad debt. Amend 1040ez tax form Casualty loss or ordinary loss. Amend 1040ez tax form   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. Amend 1040ez tax form The choice is generally 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. Amend 1040ez tax form 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. Amend 1040ez tax form 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. Amend 1040ez tax form Once you make this choice, you cannot change it without permission from the Internal Revenue Service. Amend 1040ez tax form   If you claim an ordinary loss, report it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Amend 1040ez tax form The maximum amount you can claim is $20,000 ($10,000 if you are married filing separately) reduced by any expected state insurance proceeds. Amend 1040ez tax form Your loss is subject to the 2%-of-adjusted-gross-income limit. Amend 1040ez tax form You cannot choose to claim an ordinary loss if any part of the deposit is federally insured. Amend 1040ez tax form Nonbusiness bad debt. Amend 1040ez tax form   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. Amend 1040ez tax form How to report. Amend 1040ez tax form   The kind of deduction you choose for your loss on deposits determines how you report your loss. Amend 1040ez tax form If you choose: Casualty loss — report it on Form 4684 first and then on Schedule A (Form 1040). Amend 1040ez tax form Ordinary loss — report it on Schedule A (Form 1040) as a miscellaneous itemized deduction. Amend 1040ez tax form Nonbusiness bad debt — report it on Form 8949 first and then on Schedule D (Form 1040). Amend 1040ez tax form More information. Amend 1040ez tax form   For more information, see Special Treatment for Losses on Deposits in Insolvent or Bankrupt Financial Institutions in the Instructions for Form 4684 or Deposit in Insolvent or Bankrupt Financial Institution in Publication 550. Amend 1040ez tax form Proof of Loss To deduct a casualty or theft loss, you must be able to prove that you had a casualty or theft. Amend 1040ez tax form You also must be able to support the amount you take as a deduction. Amend 1040ez tax form Casualty loss proof. Amend 1040ez tax form   For a casualty loss, your records should show all the following. Amend 1040ez tax form The type of casualty (car accident, fire, storm, etc. Amend 1040ez tax form ) and when it occurred. Amend 1040ez tax form That the loss was a direct result of the casualty. Amend 1040ez tax form 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. Amend 1040ez tax form Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Amend 1040ez tax form Theft loss proof. Amend 1040ez tax form   For a theft loss, your records should show all the following. Amend 1040ez tax form When you discovered that your property was missing. Amend 1040ez tax form That your property was stolen. Amend 1040ez tax form That you were the owner of the property. Amend 1040ez tax form Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Amend 1040ez tax form It is important that you have records that will prove your deduction. Amend 1040ez tax form If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. Amend 1040ez tax form Figuring a Loss Figure the amount of your loss using the following steps. Amend 1040ez tax form Determine your adjusted basis in the property before the casualty or theft. Amend 1040ez tax form Determine the decrease in fair market value of the property as a result of the casualty or theft. Amend 1040ez tax form From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive. Amend 1040ez tax form 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. Amend 1040ez tax form Gain from reimbursement. Amend 1040ez tax form   If your reimbursement is more than your adjusted basis in the property, you have a gain. Amend 1040ez tax form This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. Amend 1040ez tax form If you have a gain, you may have to pay tax on it, or you may be able to postpone reporting the gain. Amend 1040ez tax form See Publication 547 for more information on how to treat a gain from a reimbursement for a casualty or theft. Amend 1040ez tax form Leased property. Amend 1040ez tax form   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. Amend 1040ez tax form 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. Amend 1040ez tax form 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. Amend 1040ez tax form FMV of stolen property. Amend 1040ez tax form   The FMV of property immediately after a theft is considered to be zero, since you no longer have the property. Amend 1040ez tax form Example. Amend 1040ez tax form Several years ago, you purchased silver dollars at face value for $150. Amend 1040ez tax form This is your adjusted basis in the property. Amend 1040ez tax form Your silver dollars were stolen this year. Amend 1040ez tax form The FMV of the coins was $1,000 just before they were stolen, and insurance did not cover them. Amend 1040ez tax form Your theft loss is $150. Amend 1040ez tax form Recovered stolen property. Amend 1040ez tax form   Recovered stolen property is your property that was stolen and later returned to you. Amend 1040ez tax form 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. Amend 1040ez tax form Use this amount to refigure your total loss for the year in which the loss was deducted. Amend 1040ez tax form   If your refigured loss is less than the loss you deducted, you generally have to report the difference as income in the recovery year. Amend 1040ez tax form But report the difference only up to the amount of the loss that reduced your tax. Amend 1040ez tax form For more information on the amount to report, see Recoveries in chapter 12. Amend 1040ez tax form 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. Amend 1040ez tax form However, other measures can also be used to establish certain decreases. Amend 1040ez tax form Appraisal. Amend 1040ez tax form   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterward should be made by a competent appraiser. Amend 1040ez tax form The appraiser must recognize the effects of any general market decline that may occur along with the casualty. Amend 1040ez tax form This information is needed to limit any deduction to the actual loss resulting from damage to the property. Amend 1040ez tax form   Several factors are important in evaluating the accuracy of an appraisal, including the following. Amend 1040ez tax form The appraiser's familiarity with your property before and after the casualty or theft. Amend 1040ez tax form The appraiser's knowledge of sales of comparable property in the area. Amend 1040ez tax form The appraiser's knowledge of conditions in the area of the casualty. Amend 1040ez tax form The appraiser's method of appraisal. Amend 1040ez tax form    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. Amend 1040ez tax form For more information on disasters, see Disaster Area Losses, in Pub. Amend 1040ez tax form 547. Amend 1040ez tax form Cost of cleaning up or making repairs. Amend 1040ez tax form   The cost of repairing damaged property is not part of a casualty loss. Amend 1040ez tax form Neither is the cost of cleaning up after a casualty. Amend 1040ez tax form But you can use the cost of cleaning up or making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. Amend 1040ez tax form The repairs are actually made. Amend 1040ez tax form The repairs are necessary to bring the property back to its condition before the casualty. Amend 1040ez tax form The amount spent for repairs is not excessive. Amend 1040ez tax form The repairs take care of the damage only. Amend 1040ez tax form The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. Amend 1040ez tax form Landscaping. Amend 1040ez tax form   The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. Amend 1040ez tax form You may be able to measure your loss by what you spend on the following. Amend 1040ez tax form Removing destroyed or damaged trees and shrubs minus any salvage you receive. Amend 1040ez tax form Pruning and other measures taken to preserve damaged trees and shrubs. Amend 1040ez tax form Replanting necessary to restore the property to its approximate value before the casualty. Amend 1040ez tax form Car value. Amend 1040ez tax form    Books issued by various automobile organizations that list your car may be useful in figuring the value of your car. Amend 1040ez tax form You can use the book's retail values and modify them by such factors as mileage and the condition of your car to figure its value. Amend 1040ez tax form 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. Amend 1040ez tax form If your car is not listed in the books, determine its value from other sources. Amend 1040ez tax form A dealer's offer for your car as a trade-in on a new car is not usually a measure of its true value. Amend 1040ez tax form 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. Amend 1040ez tax form Cost of protection. Amend 1040ez tax form   The cost of protecting your property against a casualty or theft is not part of a casualty or theft loss. Amend 1040ez tax form The amount you spend on insurance or to board up your house against a storm is not part of your loss. Amend 1040ez tax form   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. Amend 1040ez tax form An example would be the cost of a dike to prevent flooding. Amend 1040ez tax form Exception. Amend 1040ez tax form   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. Amend 1040ez tax form See Disaster Area Losses in Publication 547. Amend 1040ez tax form Incidental expenses. Amend 1040ez tax form   Any incidental expenses you have 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. Amend 1040ez tax form Replacement cost. Amend 1040ez tax form   The cost of replacing stolen or destroyed property is not part of a casualty or theft loss. Amend 1040ez tax form Sentimental value. Amend 1040ez tax form   Do not consider sentimental value when determining your loss. Amend 1040ez tax form 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. Amend 1040ez tax form Decline in market value of property in or near casualty area. Amend 1040ez tax form   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. Amend 1040ez tax form You have a loss only for actual casualty damage to your property. Amend 1040ez tax form However, if your home is in a federally declared disaster area, see Disaster Area Losses in Publication 547. Amend 1040ez tax form Costs of photographs and appraisals. Amend 1040ez tax form    Photographs taken after a casualty will be helpful in establishing the condition and value of the property after it was damaged. Amend 1040ez tax form Photographs showing the condition of the property after it was repaired, restored, or replaced may also be helpful. Amend 1040ez tax form    Appraisals are used to figure the decrease in FMV because of a casualty or theft. Amend 1040ez tax form See Appraisal , earlier, under Figuring Decrease in FMV — Items To Consider, for information about appraisals. Amend 1040ez tax form   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. Amend 1040ez tax form You can claim these costs as a miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income limit on Schedule A (Form 1040). Amend 1040ez tax form For information about miscellaneous deductions, see chapter 28. Amend 1040ez tax form Adjusted Basis Adjusted basis is your basis in the property (usually cost) increased or decreased by various events, such as improvements and casualty losses. Amend 1040ez tax form For more information, see chapter 13. Amend 1040ez tax form Insurance and Other Reimbursements If you receive an insurance payment or other type of reimbursement, you must subtract the reimbursement when you figure your loss. Amend 1040ez tax form You do not have a casualty or theft loss to the extent you are reimbursed. Amend 1040ez tax form If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. Amend 1040ez tax form You must reduce your loss even if you do not receive payment until a later tax year. Amend 1040ez tax form See Reimbursement Received After Deducting Loss , later. Amend 1040ez tax form Failure to file a claim for reimbursement. Amend 1040ez tax form   If your property is covered by insurance, you must file a timely insurance claim for reimbursement of your loss. Amend 1040ez tax form Otherwise, you cannot deduct this loss as a casualty or theft loss. Amend 1040ez tax form However, this rule does not apply to the portion of the loss not covered by insurance (for example, a deductible). Amend 1040ez tax form Example. Amend 1040ez tax form You have a car insurance policy with a $1,000 deductible. Amend 1040ez tax form Because your insurance did not cover the first $1,000 of an auto collision, the $1,000 would be deductible (subject to the deduction limits discussed later). Amend 1040ez tax form This is true even if you do not file an insurance claim, because your insurance policy would never have reimbursed you for the deductible. Amend 1040ez tax form Types of Reimbursements The most common type of reimbursement is an insurance payment for your stolen or damaged property. Amend 1040ez tax form Other types of reimbursements are discussed next. Amend 1040ez tax form Also see the Instructions for Form 4684. Amend 1040ez tax form Employer's emergency disaster fund. Amend 1040ez tax form   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. Amend 1040ez tax form Take into consideration only the amount you used to replace your destroyed or damaged property. Amend 1040ez tax form Example. Amend 1040ez tax form Your home was extensively damaged by a tornado. Amend 1040ez tax form Your loss after reimbursement from your insurance company was $10,000. Amend 1040ez tax form Your employer set up a disaster relief fund for its employees. Amend 1040ez tax form Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. Amend 1040ez tax form You received $4,000 from the fund and spent the entire amount on repairs to your home. Amend 1040ez tax form In figuring your casualty loss, you must reduce your unreimbursed loss ($10,000) by the $4,000 you received from your employer's fund. Amend 1040ez tax form Your casualty loss before applying the deduction limits discussed later is $6,000. Amend 1040ez tax form Cash gifts. Amend 1040ez tax form   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. Amend 1040ez tax form This applies even if you use the money to pay for repairs to property damaged in the disaster. Amend 1040ez tax form Example. Amend 1040ez tax form Your home was damaged by a hurricane. Amend 1040ez tax form Relatives and neighbors made cash gifts to you that were excludable from your income. Amend 1040ez tax form You used part of the cash gifts to pay for repairs to your home. Amend 1040ez tax form There were no limits or restrictions on how you could use the cash gifts. Amend 1040ez tax form Because it was an excludable gift, the money you received and used to pay for repairs to your home does not reduce your casualty loss on the damaged home. Amend 1040ez tax form Insurance payments for living expenses. Amend 1040ez tax form   You do not reduce your casualty loss by insurance payments you receive to cover living expenses in either of the following situations. Amend 1040ez tax form You lose the use of your main home because of a casualty. Amend 1040ez tax form Government authorities do not allow you access to your main home because of a casualty or threat of one. Amend 1040ez tax form Inclusion in income. Amend 1040ez tax form   If these insurance payments are more than the temporary increase in your living expenses, you must include the excess in your income. Amend 1040ez tax form Report this amount on Form 1040, line 21. Amend 1040ez tax form However, if the casualty occurs in a federally declared disaster area, none of the insurance payments are taxable. Amend 1040ez tax form See Qualified disaster relief payments, under Disaster Area Losses in Publication 547. Amend 1040ez tax form   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. Amend 1040ez tax form Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. Amend 1040ez tax form Generally, these expenses include the amounts you pay for the following. Amend 1040ez tax form Rent for suitable housing. Amend 1040ez tax form Transportation. Amend 1040ez tax form Food. Amend 1040ez tax form Utilities. Amend 1040ez tax form Miscellaneous services. Amend 1040ez tax form 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. Amend 1040ez tax form Example. Amend 1040ez tax form As a result of a fire, you vacated your apartment for a month and moved to a motel. Amend 1040ez tax form You normally pay $525 a month for rent. Amend 1040ez tax form None was charged for the month the apartment was vacated. Amend 1040ez tax form Your motel rent for this month was $1,200. Amend 1040ez tax form You normally pay $200 a month for food. Amend 1040ez tax form Your food expenses for the month you lived in the motel were $400. Amend 1040ez tax form You received $1,100 from your insurance company to cover your living expenses. Amend 1040ez tax form You determine the payment you must include in income as follows. Amend 1040ez tax form 1) Insurance payment for living expenses $1,100 2) Actual expenses during the month you are unable to use your home because of fire 1,600   3) Normal living expenses 725   4) Temporary increase in living  expenses: Subtract line 3 from line 2 875 5) Amount of payment includible  in income: Subtract line 4  from line 1 $ 225 Tax year of inclusion. Amend 1040ez tax form   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. Amend 1040ez tax form Example. Amend 1040ez tax form Your main home was destroyed by a tornado in August 2011. Amend 1040ez tax form You regained use of your home in November 2012. Amend 1040ez tax form The insurance payments you received in 2011 and 2012 were $1,500 more than the temporary increase in your living expenses during those years. Amend 1040ez tax form You include this amount in income on your 2012 Form 1040. Amend 1040ez tax form 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. Amend 1040ez tax form Disaster relief. Amend 1040ez tax form   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. Amend 1040ez tax form Qualified disaster relief payments you receive for expenses you incurred as a result of a federally declared disaster are not taxable income to you. Amend 1040ez tax form For more information, see Disaster Area Losses in Publication 547. Amend 1040ez tax form Disaster unemployment assistance payments are unemployment benefits that are taxable. Amend 1040ez tax form Generally, disaster relief grants and qualified disaster mitigation payments made under the Robert T. Amend 1040ez tax form Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not includible in your income. Amend 1040ez tax form See Disaster Area Losses in Publication 547. Amend 1040ez tax form Reimbursement Received After Deducting Loss If you figured your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you receive your actual reimbursement. Amend 1040ez tax form This section explains the adjustment you may have to make. Amend 1040ez tax form Actual reimbursement less than expected. Amend 1040ez tax form   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. Amend 1040ez tax form Example. Amend 1040ez tax form Your personal car had an FMV of $2,000 when it was destroyed in a collision with another car in 2012. Amend 1040ez tax form The accident was due to the negligence of the other driver. Amend 1040ez tax form At the end of 2012, there was a reasonable prospect that the owner of the other car would reimburse you in full. Amend 1040ez tax form You did not have a deductible loss in 2012. Amend 1040ez tax form In January 2013, the court awarded you a judgment of $2,000. Amend 1040ez tax form However, in July it became apparent that you will be unable to collect any amount from the other driver. Amend 1040ez tax form You can deduct the loss in 2013 subject to the limits discussed later. Amend 1040ez tax form Actual reimbursement more than expected. Amend 1040ez tax form   If you later receive more reimbursement than you expected after you claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. Amend 1040ez tax form 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. Amend 1040ez tax form You do not refigure your tax for the year you claimed the deduction. Amend 1040ez tax form For more information, see Recoveries in chapter 12. Amend 1040ez tax form 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. Amend 1040ez tax form 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. Amend 1040ez tax form Include the gain as ordinary income up to the amount of your deduction that reduced your tax for the earlier year. Amend 1040ez tax form See Figuring a Gain in Publication 547 for more information on how to treat a gain from the reimbursement of a casualty or theft. Amend 1040ez tax form Actual reimbursement same as expected. Amend 1040ez tax form   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. Amend 1040ez tax form Example. Amend 1040ez tax form In December 2013, you had a collision while driving your personal car. Amend 1040ez tax form Repairs to the car cost $950. Amend 1040ez tax form You had $100 deductible collision insurance. Amend 1040ez tax form Your insurance company agreed to reimburse you for the rest of the damage. Amend 1040ez tax form Because you expected a reimbursement from the insurance company, you did not have a casualty loss deduction in 2013. Amend 1040ez tax form Due to the $100 rule (discussed later under Deduction Limits ), you cannot deduct the $100 you paid as the deductible. Amend 1040ez tax form When you receive the $850 from the insurance company in 2014, do not report it as income. Amend 1040ez tax form Single Casualty on Multiple Properties Personal property. Amend 1040ez tax form   Personal property is any property that is not real property. Amend 1040ez tax form 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. Amend 1040ez tax form Then combine these separate losses to figure the total loss from that casualty or theft. Amend 1040ez tax form Example. Amend 1040ez tax form A fire in your home destroyed an upholstered chair, an oriental rug, and an antique table. Amend 1040ez tax form You did not have fire insurance to cover your loss. Amend 1040ez tax form (This was the only casualty or theft you had during the year. Amend 1040ez tax form ) You paid $750 for the chair and you established that it had an FMV of $500 just before the fire. Amend 1040ez tax form The rug cost $3,000 and had an FMV of $2,500 just before the fire. Amend 1040ez tax form You bought the table at an auction for $100 before discovering it was an antique. Amend 1040ez tax form It had been appraised at $900 before the fire. Amend 1040ez tax form You figure your loss on each of these items as follows:     Chair Rug Table 1) Basis (cost) $750 $3,000 $100 2) FMV before fire $500 $2,500 $900 3) FMV after fire –0– –0– –0– 4) Decrease in FMV $500 $2,500 $900 5) Loss (smaller of (1) or  (4)) $500 $2,500 $100           6) Total loss     $3,100 Real property. Amend 1040ez tax form   In figuring a casualty loss on personal-use real property, treat the entire property (including any improvements, such as buildings, trees, and shrubs) as one item. Amend 1040ez tax form Figure the loss using the smaller of the adjusted basis or the decrease in FMV of the entire property. Amend 1040ez tax form Example. Amend 1040ez tax form You bought your home a few years ago. Amend 1040ez tax form You paid $160,000 ($20,000 for the land and $140,000 for the house). Amend 1040ez tax form You also spent $2,000 for landscaping. Amend 1040ez tax form This year a fire destroyed your home. Amend 1040ez tax form The fire also damaged the shrubbery and trees in your yard. Amend 1040ez tax form The fire was your only casualty or theft loss this year. Amend 1040ez tax form Competent appraisers valued the property as a whole at $200,000 before the fire, but only $30,000 after the fire. Amend 1040ez tax form (The loss to your household furnishings is not shown in this example. Amend 1040ez tax form It would be figured separately on each item, as explained earlier under Personal property . Amend 1040ez tax form ) Shortly after the fire, the insurance company paid you $155,000 for the loss. Amend 1040ez tax form You figure your casualty loss as follows: 1) Adjusted basis of the entire property (land, building, and landscaping) $162,000 2) FMV of entire property before fire $200,000 3) FMV of entire property after fire 30,000 4) Decrease in FMV of entire  property $170,000 5) Loss (smaller of (1) or (4)) $162,000 6) Subtract insurance 155,000 7) Amount of loss after reimbursement $7,000 Deduction Limits After you have figured your casualty or theft loss, you must figure how much of the loss you can deduct. Amend 1040ez tax form If the loss was to property for your personal use or your family's use, there are two limits on the amount you can deduct for your casualty or theft loss. Amend 1040ez tax form You must reduce each casualty or theft loss by $100 ($100 rule). Amend 1040ez tax form You must further reduce the total of all your casualty or theft losses by 10% of your adjusted gross income (10% rule). Amend 1040ez tax form You make these reductions on Form 4684. Amend 1040ez tax form These rules are explained next and Table 25-1 summarizes how to apply the $100 rule and the 10% rule in various situations. Amend 1040ez tax form For more detailed explanations and examples, see Publication 547. Amend 1040ez tax form Table 25-1. Amend 1040ez tax form How To Apply the Deduction Limits for Personal-Use Property   $100 Rule 10% Rule General Application You must reduce each casualty or theft loss by $100 when figuring your deduction. Amend 1040ez tax form Apply this rule after you have figured the amount of your loss. Amend 1040ez tax form You must reduce your total casualty or theft loss by 10% of your adjusted gross income. Amend 1040ez tax form Apply this rule after you reduce each loss by $100 (the $100 rule). Amend 1040ez tax form Single Event Apply this rule only once, even if many pieces of property are affected. Amend 1040ez tax form Apply this rule only once, even if many pieces of property are affected. Amend 1040ez tax form More Than One Event Apply to the loss from each event. Amend 1040ez tax form Apply to the total of all your losses from all events. Amend 1040ez tax form More Than One Person— With Loss From the Same Event (other than a married couple filing jointly) Apply separately to each person. Amend 1040ez tax form Apply separately to each person. Amend 1040ez tax form Married Couple—With Loss From the Same Event Filing Jointly Apply as if you were one person. Amend 1040ez tax form Apply as if you were one person. Amend 1040ez tax form Filing Separately Apply separately to each spouse. Amend 1040ez tax form Apply separately to each spouse. Amend 1040ez tax form More Than One Owner (other than a married couple filing jointly) Apply separately to each owner of jointly owned property. Amend 1040ez tax form Apply separately to each owner of jointly owned property. Amend 1040ez tax form Property used partly for business and partly for personal purposes. Amend 1040ez tax form   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 part and for the business or income-producing part. Amend 1040ez tax form You must figure each loss separately because the $100 rule and the 10% rule apply only to the loss on the personal-use part of the property. Amend 1040ez tax form $100 Rule After you have figured your casualty or theft loss on personal-use property, you must reduce that loss by $100. Amend 1040ez tax form This reduction applies to each total casualty or theft loss. Amend 1040ez tax form It does not matter how many pieces of property are involved in an event. Amend 1040ez tax form Only a single $100 reduction applies. Amend 1040ez tax form Example. Amend 1040ez tax form A hailstorm damages your home and your car. Amend 1040ez tax form Determine the amount of loss, as discussed earlier, for each of these items. Amend 1040ez tax form Since the losses are due to a single event, you combine the losses and reduce the combined amount by $100. Amend 1040ez tax form Single event. Amend 1040ez tax form   Generally, events closely related in origin cause a single casualty. Amend 1040ez tax form 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. Amend 1040ez tax form 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. Amend 1040ez tax form Apply this rule after you reduce each loss by $100. Amend 1040ez tax form For more information, see the Form 4684 instructions. Amend 1040ez tax form If you have both gains and losses from casualties or thefts, see Gains and losses , later in this discussion. Amend 1040ez tax form Example 1. Amend 1040ez tax form In June, you discovered that your house had been burglarized. Amend 1040ez tax form Your loss after insurance reimbursement was $2,000. Amend 1040ez tax form Your adjusted gross income for the year you discovered the theft is $29,500. Amend 1040ez tax form You first apply the $100 rule and then the 10% rule. Amend 1040ez tax form Figure your theft loss deduction as follows. Amend 1040ez tax form 1) Loss after insurance $2,000 2) Subtract $100 100 3) Loss after $100 rule $1,900 4) Subtract 10% × $29,500 AGI 2,950 5) Theft loss deduction –0– You do not have a theft loss deduction because your loss after you apply the $100 rule ($1,900) is less than 10% of your adjusted gross income ($2,950). Amend 1040ez tax form Example 2. Amend 1040ez tax form In March, you had a car accident that totally destroyed your car. Amend 1040ez tax form You did not have collision insurance on your car, so you did not receive any insurance reimbursement. Amend 1040ez tax form Your loss on the car was $1,800. Amend 1040ez tax form In November, a fire damaged your basement and totally destroyed the furniture, washer, dryer, and other items stored there. Amend 1040ez tax form Your loss on the basement items after reimbursement was $2,100. Amend 1040ez tax form Your adjusted gross income for the year that the accident and fire occurred is $25,000. Amend 1040ez tax form You figure your casualty loss deduction as follows. Amend 1040ez tax form       Base-     Car ment 1) Loss $1,800 $2,100 2) Subtract $100 per incident 100 100 3) Loss after $100 rule $1,700 $2,000 4) Total loss $3,700 5) Subtract 10% × $25,000 AGI 2,500 6) Casualty loss deduction $1,200 Gains and losses. Amend 1040ez tax form   If you had both gains and losses from casualties or thefts to personal-use property, you must compare your total gains to your total losses. Amend 1040ez tax form 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. Amend 1040ez tax form Casualty or theft gains do not include gains you choose to postpone. Amend 1040ez tax form See Publication 547 for information on the postponement of gain. Amend 1040ez tax form Losses more than gains. Amend 1040ez tax form   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. Amend 1040ez tax form The rest, if any, is your deductible loss from personal-use property. Amend 1040ez tax form Gains more than losses. Amend 1040ez tax form   If your recognized gains are more than your losses, subtract your losses from your gains. Amend 1040ez tax form The difference is treated as capital gain and must be reported on Schedule D (Form 1040). Amend 1040ez tax form The 10% rule does not apply to your gains. Amend 1040ez tax form When To Report Gains and Losses Gains. Amend 1040ez tax form   If you receive an insurance or other reimbursement that is more than your adjusted basis in the destroyed or stolen property, you have a gain from the casualty or theft. Amend 1040ez tax form You must include this gain in your income in the year you receive the reimbursement, unless you choose to postpone reporting the gain as explained in Publication 547. Amend 1040ez tax form If you have a loss, see Table 25-2 . Amend 1040ez tax form Table 25-2. Amend 1040ez tax form When To Deduct a Loss IF you have a loss. Amend 1040ez tax form . Amend 1040ez tax form . Amend 1040ez tax form THEN deduct it in the year. Amend 1040ez tax form . Amend 1040ez tax form . Amend 1040ez tax form from a casualty, the loss occurred. Amend 1040ez tax form in a federally declared disaster area, the disaster occurred or the year immediately before the disaster. Amend 1040ez tax form from a theft, the theft was discovered. Amend 1040ez tax form on a deposit treated as a:   • casualty or any ordinary loss, a reasonable estimate can be made. Amend 1040ez tax form • bad debt, deposits are totally worthless. Amend 1040ez tax form Losses. Amend 1040ez tax form   Generally, you can deduct a casualty loss that is not reimbursable only in the tax year in which the casualty occurred. Amend 1040ez tax form This is true even if you do not repair or replace the damaged property until a later year. Amend 1040ez tax form   You can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. Amend 1040ez tax form   If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become reasonably certain that it will not be reimbursed. Amend 1040ez tax form Loss on deposits. Amend 1040ez tax form   If your loss is a loss on deposits in an insolvent or bankrupt financial institution, see Loss on Deposits , earlier. Amend 1040ez tax form Disaster Area Loss You generally must deduct a casualty loss in the year it occurred. Amend 1040ez tax form However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct the loss on your tax return or amended return for either of the following years. Amend 1040ez tax form The year the disaster occurred. Amend 1040ez tax form The year immediately preceding the year the disaster occurred. Amend 1040ez tax form Gains. Amend 1040ez tax form    Special rules apply if you choose to postpone reporting gain on property damaged or destroyed in a federally declared disaster area. Amend 1040ez tax form For those special rules, see Publication 547. Amend 1040ez tax form Postponed tax deadlines. Amend 1040ez tax form   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. Amend 1040ez tax form The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Amend 1040ez tax form   If any tax deadline is postponed, the IRS will publicize the postponement in your area by publishing a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Amend 1040ez tax form Go to www. Amend 1040ez tax form irs. Amend 1040ez tax form gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. Amend 1040ez tax form Who is eligible. Amend 1040ez tax form   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Amend 1040ez tax form Any individual whose main home is located in a covered disaster area (defined next). Amend 1040ez tax form Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Amend 1040ez tax form Any individual who is a relief worker affiliated with a recognized government or philanthropic organization who is assisting in a covered disaster area. Amend 1040ez tax form Any individual, business entity, or sole proprietorship whose records are needed to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Amend 1040ez tax form The main home or principal place of business does not have to be located in the covered disaster area. Amend 1040ez tax form Any estate or trust that has tax records necessary to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Amend 1040ez tax form The spouse on a joint return with a taxpayer who is eligible for postponements. Amend 1040ez tax form Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose records necessary to meet a postponed tax deadline are located in the covered disaster area. Amend 1040ez tax form Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. Amend 1040ez tax form Any other person determined by the IRS to be affected by a federally declared disaster. Amend 1040ez tax form Covered disaster area. Amend 1040ez tax form   This is an area of a federally declared disaster in which the IRS has decided to postpone tax deadlines for up to 1 year. Amend 1040ez tax form Abatement of interest and penalties. Amend 1040ez tax form   The IRS may abate the interest and penalties on underpaid income tax for the length of any postponement of tax deadlines. Amend 1040ez tax form More information. Amend 1040ez tax form   For more information, see Disaster Area Losses in Publication 547. Amend 1040ez tax form How To Report Gains and Losses Use Form 4684 to report a gain or a deductible loss from a casualty or theft. Amend 1040ez tax form If you have more than one casualty or theft, use a separate Form 4684 to determine your gain or loss for each event. Amend 1040ez tax form Combine the gains and losses on one Form 4684. Amend 1040ez tax form Follow the form instructions as to which lines to fill out. Amend 1040ez tax form In addition, you must use the appropriate schedule to report a gain or loss. Amend 1040ez tax form The schedule you use depends on whether you have a gain or loss. Amend 1040ez tax form If you have a: Report it on: Gain Schedule D (Form 1040) Loss Schedule A (Form 1040) Adjustments to basis. Amend 1040ez tax form   If you have a casualty or theft loss, you must decrease your basis in the property by any insurance or other reimbursement you receive, and by any deductible loss. Amend 1040ez tax form Amounts you spend to restore your property after a casualty increase your adjusted basis. Amend 1040ez tax form See Adjusted Basis in chapter 13 for more information. Amend 1040ez tax form Net operating loss (NOL). Amend 1040ez tax form    If your casualty or theft loss deduction causes your deductions for the year to be more than your income for the year, you may have an NOL. Amend 1040ez tax form You can use an NOL to lower your tax in an earlier year, allowing you to get a refund for tax you have already paid. Amend 1040ez tax form Or, you can use it to lower your tax in a later year. Amend 1040ez tax form You do not have to be in business to have an NOL from a casualty or theft loss. Amend 1040ez tax form For more information, see Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. Amend 1040ez tax form Prev  Up  Next   Home   More Online Publications