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How To Refile A Tax Return

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How To Refile A Tax Return

How to refile a tax return Index A Actuarial Tables, Actuarial Tables How to use, How To Use Actuarial Tables Unisex, Unisex Annuity Tables Adjustments to total cost, Adjustments Annuity starting date, The annuity starting date Assistance (see Tax help) D Death benefit exclusion, Death benefit exclusion. How to refile a tax return E Election Post-June 1986 contributions, Contributions made both before July 1986 and after June 1986. How to refile a tax return , Annuity received after June 30, 1986. How to refile a tax return Pre-July 1986 contributions, Contributions made both before July 1986 and after June 1986. How to refile a tax return Employment abroad, Foreign employment. How to refile a tax return Exclusion limited to net cost, Exclusion limited to net cost. How to refile a tax return Exclusion not limited to net cost, Exclusion not limited to net cost. How to refile a tax return Exclusion ratio, Step 3. How to refile a tax return Expected return, Expected Return F Fixed period annuity, Types of pensions and annuities. How to refile a tax return , Fixed period annuity. How to refile a tax return Foreign employment, Foreign employment. How to refile a tax return Free tax services, Free help with your tax return. How to refile a tax return G General Rule Who must use the, Who must use the General Rule. How to refile a tax return H Help (see Tax help) Help from IRS, Help from IRS. How to refile a tax return , Request for a ruling. How to refile a tax return , Free IRS help. How to refile a tax return , Requesting a Ruling on Taxation of Annuity I Increase in payments, Increase in annuity payments. How to refile a tax return Investment in the contract, Investment in the Contract J Joint and survivor annuities, Types of pensions and annuities. How to refile a tax return , Joint and survivor annuities. How to refile a tax return N Net cost, Net cost. How to refile a tax return Nonqualified employee plans, General Information P Part-year payments, Part-year payments. How to refile a tax return Periodic payments, taxation of, Taxation of Periodic Payments Publications (see Tax help) Q Qualified plans, Introduction R Refund feature, Refund feature. How to refile a tax return Ruling request, Request for a ruling. How to refile a tax return , Requesting a Ruling on Taxation of Annuity S Single life annuity, Single life annuity. How to refile a tax return Survivor annuities, Different payments to survivor. How to refile a tax return T Tax help, How To Get Tax Help Taxable part of annuity How to compute the, Computation Under the General Rule Worksheets, Worksheet I For Determining Taxable Annuity Under Regulations Section 1. How to refile a tax return 72-6(d)(6) Election For Single Annuitant With No Survivor Annuity, Worksheet II For Determining Taxable Annuity Under Regulations Section 1. How to refile a tax return 72-6(d)(6) Election For Joint and Survivor Annuity TTY/TDD information, How To Get Tax Help Types of pensions and annuities, Types of pensions and annuities. How to refile a tax return V Variable annuities, Types of pensions and annuities. How to refile a tax return , Variable annuities. How to refile a tax return W Withholding of tax, Withholding tax and estimated tax. How to refile a tax return Prev  Up     Home   More Online Publications
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The How To Refile A Tax Return

How to refile a tax return 11. How to refile a tax return   Casualties, Thefts, and Condemnations Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Casualties and TheftsDeductible losses. How to refile a tax return Nondeductible losses. How to refile a tax return Family pet. How to refile a tax return Progressive deterioration. How to refile a tax return Decline in market value of stock. How to refile a tax return Mislaid or lost property. How to refile a tax return Farming Losses How To Figure a Loss Deduction Limits on Losses of Personal-Use Property When Loss Is Deductible Proof of Loss Figuring a Gain Other Involuntary ConversionsCondemnation Irrigation Project Livestock Losses Tree Seedlings Postponing GainException. How to refile a tax return Related persons. How to refile a tax return Replacement Property Replacement Period How To Postpone Gain Disaster Area LossesWho is eligible. How to refile a tax return Covered disaster area. How to refile a tax return Reporting Gains and Losses Introduction This chapter explains the tax treatment of casualties, thefts, and condemnations. How to refile a tax return A casualty occurs when property is damaged, destroyed, or lost due to a sudden, unexpected, or unusual event. How to refile a tax return A theft occurs when property is stolen. How to refile a tax return A condemnation occurs when private property is legally taken for public use without the owner's consent. How to refile a tax return A casualty, theft, or condemnation may result in a deductible loss or taxable gain on your federal income tax return. How to refile a tax return You may have a deductible loss or a taxable gain even if only a portion of your property was affected by a casualty, theft, or condemnation. How to refile a tax return An involuntary conversion occurs when you receive money or other property as reimbursement for a casualty, theft, condemnation, disposition of property under threat of condemnation, or certain other events discussed in this chapter. How to refile a tax return If an involuntary conversion results in a gain and you buy qualified replacement property within the specified replacement period, you can postpone reporting the gain on your income tax return. How to refile a tax return For more information, see Postponing Gain , later. How to refile a tax return Topics - This chapter discusses: Casualties and thefts How to figure a loss or gain Other involuntary conversions Postponing gain Disaster area losses Reporting gains and losses Drought involving property connected with a trade or business or a transaction entered into for profit Useful Items - You may want to see: Publication 523 Selling Your Home 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts 584 Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) 584-B Business Casualty, Disaster, and Theft Loss Workbook Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch D (Form 1040) Capital Gains and Losses Sch F (Form 1040) Profit or Loss From Farming 4684 Casualties and Thefts 4797 Sales of Business Property See chapter 16 for information about getting publications and forms. How to refile a tax return Casualties and Thefts If your property is destroyed, damaged, or stolen, you may have a deductible loss. How to refile a tax return If the insurance or other reimbursement is more than the adjusted basis of the destroyed, damaged, or stolen property, you may have a taxable gain. How to refile a tax return Casualty. How to refile a tax return   A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. How to refile a tax return A sudden event is one that is swift, not gradual or progressive. How to refile a tax return An unexpected event is one that is ordinarily unanticipated and unintended. How to refile a tax return 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. How to refile a tax return Deductible losses. How to refile a tax return   Deductible casualty losses can result from a number of different causes, including the following. How to refile a tax return Airplane crashes. How to refile a tax return Car, truck, or farm equipment accidents not resulting from your willful act or willful negligence. How to refile a tax return Earthquakes. How to refile a tax return Fires (but see Nondeductible losses next for exceptions). How to refile a tax return Floods. How to refile a tax return Freezing. How to refile a tax return 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. How to refile a tax return Lightning. How to refile a tax return Storms, including hurricanes and tornadoes. How to refile a tax return Terrorist attacks. How to refile a tax return Vandalism. How to refile a tax return Volcanic eruptions. How to refile a tax return Nondeductible losses. How to refile a tax return   A casualty loss is not deductible if the damage or destruction is caused by the following. How to refile a tax return Accidentally breaking articles such as glassware or china under normal conditions. How to refile a tax return A family pet (explained below). How to refile a tax return A fire if you willfully set it, or pay someone else to set it. How to refile a tax return A car, truck, or farm equipment accident if your willful negligence or willful act caused it. How to refile a tax return The same is true if the willful act or willful negligence of someone acting for you caused the accident. How to refile a tax return Progressive deterioration (explained below). How to refile a tax return Family pet. How to refile a tax return   Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed above under Casualty are met. How to refile a tax return Example. How to refile a tax return You keep your horse in your yard. How to refile a tax return The ornamental fruit trees in your yard were damaged when your horse stripped the bark from them. How to refile a tax return Some of the trees were completely girdled and died. How to refile a tax return Because the damage was not unexpected or unusual, the loss is not deductible. How to refile a tax return Progressive deterioration. How to refile a tax return   Loss of property due to progressive deterioration is not deductible as a casualty loss. How to refile a tax return This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. How to refile a tax return Examples of damage due to progressive deterioration include damage from rust, corrosion, or termites. How to refile a tax return However, weather-related conditions or disease may cause another type of involuntary conversion. How to refile a tax return See Other Involuntary Conversions , later. How to refile a tax return Theft. How to refile a tax return   A theft is the taking and removing of money or property with the intent to deprive the owner of it. How to refile a tax return 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. How to refile a tax return You do not need to show a conviction for theft. How to refile a tax return   Theft includes the taking of money or property by the following means: Blackmail, Burglary, Embezzlement, Extortion, Kidnapping for ransom, Larceny, Robbery, or Threats. How to refile a tax return The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. How to refile a tax return Decline in market value of stock. How to refile a tax return   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. How to refile a tax return 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. How to refile a tax return You report a capital loss on Schedule D (Form 1040). How to refile a tax return For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. How to refile a tax return Mislaid or lost property. How to refile a tax return   The simple disappearance of money or property is not a theft. How to refile a tax return 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. How to refile a tax return Example. How to refile a tax return A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. How to refile a tax return The diamond falls from the ring and is never found. How to refile a tax return The loss of the diamond is a casualty. How to refile a tax return Farming Losses You can deduct certain casualty or theft losses that occur in the business of farming. How to refile a tax return The following is a discussion of some losses you can deduct and some you cannot deduct. How to refile a tax return Livestock or produce bought for resale. How to refile a tax return   Casualty or theft losses of livestock or produce bought for resale are deductible if you report your income on the cash method. How to refile a tax return If you report your income on an accrual method, take casualty and theft losses on property bought for resale by omitting the item from the closing inventory for the year of the loss. How to refile a tax return You cannot take a separate deduction. How to refile a tax return Livestock, plants, produce, and crops raised for sale. How to refile a tax return   Losses of livestock, plants, produce, and crops raised for sale are generally not deductible if you report your income on the cash method. How to refile a tax return You have already deducted the cost of raising these items as farm expenses, so their basis is equal to zero. How to refile a tax return   For plants with a preproductive period of more than 2 years, you may have a deductible loss if you have a tax basis in the plants. How to refile a tax return You usually have a tax basis if you capitalized the expenses associated with these plants under the uniform capitalization rules. How to refile a tax return The uniform capitalization rules are discussed in chapter 6. How to refile a tax return   If you report your income on an accrual method, casualty or theft losses are deductible only if you included the items in your inventory at the beginning of your tax year. How to refile a tax return You get the deduction by omitting the item from your inventory at the close of your tax year. How to refile a tax return You cannot take a separate casualty or theft deduction. How to refile a tax return Income loss. How to refile a tax return   A loss of future income is not deductible. How to refile a tax return Example. How to refile a tax return A severe flood destroyed your crops. How to refile a tax return Because you are a cash method taxpayer and already deducted the cost of raising the crops as farm expenses, this loss is not deductible, as explained above under Livestock, plants, produce, and crops raised for sale . How to refile a tax return You estimate that the crop loss will reduce your farm income by $25,000. How to refile a tax return This loss of future income is also not deductible. How to refile a tax return Loss of timber. How to refile a tax return   If you sell timber downed as a result of a casualty, treat the proceeds from the sale as a reimbursement. How to refile a tax return If you use the proceeds to buy qualified replacement property, you can postpone reporting the gain. How to refile a tax return See Postponing Gain , later. How to refile a tax return Property used in farming. How to refile a tax return   Casualty and theft losses of property used in your farm business usually result in deductible losses. How to refile a tax return If a fire or storm destroyed your barn, or you lose by casualty or theft an animal you bought for draft, breeding, dairy, or sport, you may have a deductible loss. How to refile a tax return See How To Figure a Loss , later. How to refile a tax return Raised draft, breeding, dairy, or sporting animals. How to refile a tax return   Generally, losses of raised draft, breeding, dairy, or sporting animals do not result in deductible casualty or theft losses because you have no basis in the animals. How to refile a tax return However, you may have a basis in the animal and therefore may be able to claim a deduction if either of the following situations applies to you. How to refile a tax return You use inventories to determine your income and you included the animals in your inventory. How to refile a tax return You capitalized the expenses associated with the animals under the uniform capitalization rules and therefore have a tax basis in the animals subject to a casualty or theft. How to refile a tax return When you include livestock in inventory, its last inventory value is its basis. How to refile a tax return When you lose an inventoried animal held for draft, breeding, dairy, or sport by casualty or theft during the year, decrease ending inventory by the amount you included in inventory for the animal. How to refile a tax return You cannot take a separate deduction. How to refile a tax return How To Figure a Loss How you figure a deductible casualty or theft loss depends on whether the loss was to farm or personal-use property and whether the property was stolen or partly or completely destroyed. How to refile a tax return Farm property. How to refile a tax return   Farm property is the property you use in your farming business. How to refile a tax return If your farm property was completely destroyed or stolen, 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      You can use the schedules in Publication 584-B to list your stolen, damaged, or destroyed business property and to figure your loss. How to refile a tax return   If your farm property was partially damaged, use the steps shown under Personal-use property next to figure your casualty loss. How to refile a tax return However, the deduction limits, discussed later, do not apply to farm property. How to refile a tax return Personal-use property. How to refile a tax return   Personal-use property is property used by you or your family members for personal purposes and not used in your farm business or for income-producing purposes. How to refile a tax return The following items are examples of personal-use property: Your main home. How to refile a tax return Furniture and electronics used in your main home and not used in a home office or for business purposes. How to refile a tax return Clothing and jewelry. How to refile a tax return An automobile used for nonbusiness purposes. How to refile a tax return You figure the casualty or theft loss on this property by taking the following steps. How to refile a tax return Determine your adjusted basis in the property before the casualty or theft. How to refile a tax return Determine the decrease in fair market value of the property as a result of the casualty or theft. How to refile a tax return From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you receive or expect to receive. How to refile a tax return You must apply the deduction limits, discussed later, to determine your deductible loss. How to refile a tax return    You can use Publication 584 to list your stolen or damaged personal-use property and figure your loss. How to refile a tax return It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. How to refile a tax return Adjusted basis. How to refile a tax return   Adjusted basis is your basis (usually cost) increased or decreased by various events, such as improvements and casualty losses. How to refile a tax return For more information about adjusted basis, see chapter 6. How to refile a tax return Decrease in fair market value (FMV). How to refile a tax return   The decrease in FMV is the difference between the property's value immediately before the casualty or theft and its value immediately afterward. How to refile a tax return FMV is defined in chapter 10 under Payments Received or Considered Received . How to refile a tax return Appraisal. How to refile a tax return   To figure the decrease in FMV because of a casualty or theft, you generally need a competent appraisal. How to refile a tax return But other measures, such as the cost of cleaning up or making repairs (discussed next) can be used to establish decreases in FMV. How to refile a tax return   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. How to refile a tax return The appraiser must recognize the effects of any general market decline that may occur along with the casualty. How to refile a tax return This information is needed to limit any deduction to the actual loss resulting from damage to the property. How to refile a tax return Cost of cleaning up or making repairs. How to refile a tax return   The cost of cleaning up after a casualty is not part of a casualty loss. How to refile a tax return Neither is the cost of repairing damaged property after a casualty. How to refile a tax return 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. How to refile a tax return The repairs are actually made. How to refile a tax return The repairs are necessary to bring the property back to its condition before the casualty. How to refile a tax return The amount spent for repairs is not excessive. How to refile a tax return The repairs fix the damage only. How to refile a tax return The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. How to refile a tax return Related expenses. How to refile a tax return   The incidental expenses due to a casualty or theft, such as expenses for the treatment of personal injuries, temporary housing, or a rental car, are not part of your casualty or theft loss. How to refile a tax return However, they may be deductible as farm business expenses if the damaged or stolen property is farm property. How to refile a tax return Separate computations for more than one item of property. How to refile a tax return   Generally, if a single casualty or theft involves more than one item of property, you must figure your loss separately for each item of property. How to refile a tax return Then combine the losses to determine your total loss. How to refile a tax return    There is an exception to this rule for personal-use real property. How to refile a tax return See Exception for personal-use real property, later. How to refile a tax return Example. How to refile a tax return A fire on your farm damaged a tractor and the barn in which it was stored. How to refile a tax return The tractor had an adjusted basis of $3,300. How to refile a tax return Its FMV was $28,000 just before the fire and $10,000 immediately afterward. How to refile a tax return The barn had an adjusted basis of $28,000. How to refile a tax return Its FMV was $55,000 just before the fire and $25,000 immediately afterward. How to refile a tax return You received insurance reimbursements of $2,100 on the tractor and $26,000 on the barn. How to refile a tax return Figure your deductible casualty loss separately for the two items of property. How to refile a tax return     Tractor Barn 1) Adjusted basis $3,300 $28,000 2) FMV before fire $28,000 $55,000 3) FMV after fire 10,000 25,000 4) Decrease in FMV  (line 2 − line 3) $18,000 $30,000 5) Loss (lesser of line 1 or line 4) $3,300 $28,000 6) Minus: Insurance 2,100 26,000 7) Deductible casualty loss $1,200 $2,000 8) Total deductible casualty loss $3,200 Exception for personal-use real property. How to refile a tax return   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. How to refile a tax return Figure the loss using the smaller of the following. How to refile a tax return The decrease in FMV of the entire property. How to refile a tax return The adjusted basis of the entire property. How to refile a tax return Example. How to refile a tax return You bought a farm in 1990 for $160,000. How to refile a tax return The adjusted basis of the residential part is now $128,000. How to refile a tax return In 2013, a windstorm blew down shade trees and three ornamental trees planted at a cost of $7,500 on the residential part. How to refile a tax return The adjusted basis of the residential part includes the $7,500. How to refile a tax return The fair market value (FMV) of the residential part immediately before the storm was $400,000, and $385,000 immediately after the storm. How to refile a tax return The trees were not covered by insurance. How to refile a tax return 1) Adjusted basis $128,000 2) FMV before the storm $400,000 3) FMV after the storm 385,000 4) Decrease in FMV (line 2 − line 3) $15,000 5) Loss before insurance (lesser of line 1 or line 4) $15,000 6) Minus: Insurance -0- 7) Amount of loss $15,000 Insurance and other reimbursements. How to refile a tax return   If you receive an insurance or other type of reimbursement, you must subtract the reimbursement when you figure your loss. How to refile a tax return You do not have a casualty or theft loss to the extent you are reimbursed. How to refile a tax return   If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. How to refile a tax return You must reduce your loss even if you do not receive payment until a later tax year. How to refile a tax return    Do not subtract from your loss any insurance payments you receive for living expenses if you lose the use of your main home or are denied access to it because of a casualty. How to refile a tax return You may have to include a portion of these payments in your income. How to refile a tax return See Insurance payments for living expenses in Publication 547 for details. How to refile a tax return Disaster relief. How to refile a tax return   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. How to refile a tax return Excludable cash gifts you receive also do not reduce your casualty loss if there are no limits on how you can use the money. How to refile a tax return   Generally, disaster relief grants received under the Robert T. How to refile a tax return Stafford Disaster Relief and Emergency Assistance Act are not included in your income. How to refile a tax return See Federal disaster relief grants , later, under Disaster Area Losses . How to refile a tax return   Qualified disaster relief payments for expenses you incurred as a result of a federally declared disaster are not taxable income to you. How to refile a tax return See Qualified disaster relief payments , later, under Disaster Area Losses . How to refile a tax return Reimbursement received after deducting loss. How to refile a tax return   If you figure your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you get your actual reimbursement. How to refile a tax return Actual reimbursement less than expected. How to refile a tax return   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. How to refile a tax return Actual reimbursement more than expected. How to refile a tax return   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. How to refile a tax return However, if any part of your original deduction did not reduce your tax for the earlier year, do not include that part of the reimbursement in your income. How to refile a tax return Do not refigure your tax for the year you claimed the deduction. How to refile a tax return See Recoveries in Publication 525 to find out how much extra reimbursement to include in income. How to refile a tax return 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. How to refile a tax return See Figuring a Gain in Publication 547 for information on how to treat a gain from the reimbursement you receive because of a casualty or theft. How to refile a tax return Actual reimbursement same as expected. How to refile a tax return   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. How to refile a tax return Lump-sum reimbursement. How to refile a tax return   If you have a casualty or theft loss of several assets at the same time without an allocation of reimbursement to specific assets, divide the lump-sum reimbursement among the assets according to the fair market value of each asset at the time of the loss. How to refile a tax return Figure the gain or loss separately for each asset that has a separate basis. How to refile a tax return Adjustments to basis. How to refile a tax return   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. How to refile a tax return The result is your adjusted basis in the property. How to refile a tax return Amounts you spend on repairs to restore your property to its pre-casualty condition increase your adjusted basis. How to refile a tax return See Adjusted Basis in chapter 6 for more information. How to refile a tax return Example. How to refile a tax return You built a new silo for $25,000. How to refile a tax return This is the basis in your silo because that is the total cost you incurred to build it. How to refile a tax return During the year, a tornado damaged your silo and your allowable casualty loss deduction was $1,000. How to refile a tax return In addition, your insurance company reimbursed you $4,000 for the damage and you spent $6,000 to restore the silo to its pre-casualty condition. How to refile a tax return Your adjusted basis in the silo after the casualty is $26,000 ($25,000 - $1,000 - $4,000 + $6,000). How to refile a tax return Deduction Limits on Losses of Personal-Use Property Casualty and theft losses of property held for personal use may be deductible if you itemize deductions on Schedule A (Form 1040). How to refile a tax return There are two limits on the deduction for casualty or theft loss of personal-use property. How to refile a tax return You figure these limits on Form 4684. How to refile a tax return $100 rule. How to refile a tax return   You must reduce each casualty or theft loss on personal-use property by $100. How to refile a tax return This rule applies after you have subtracted any reimbursement. How to refile a tax return 10% rule. How to refile a tax return   You must further reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. How to refile a tax return Apply this rule after you reduce each loss by $100. How to refile a tax return Adjusted gross income is on line 38 of Form 1040. How to refile a tax return Example. How to refile a tax return In June, you discovered that your house had been burglarized. How to refile a tax return Your loss after insurance reimbursement was $2,000. How to refile a tax return Your adjusted gross income for the year you discovered the burglary is $57,000. How to refile a tax return Figure your theft loss deduction as follows: 1. How to refile a tax return Loss after insurance $2,000 2. How to refile a tax return Subtract $100 100 3. How to refile a tax return Loss after $100 rule $1,900 4. How to refile a tax return Subtract 10% (. How to refile a tax return 10) × $57,000 AGI $5,700 5. How to refile a tax return 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 ($5,700). How to refile a tax return    If you have a casualty or theft gain in addition to a loss, you will have to make a special computation before you figure your 10% limit. How to refile a tax return See 10% Rule in Publication 547. How to refile a tax return When Loss Is Deductible Generally, you can deduct casualty losses that are not reimbursable only in the tax year in which they occur. How to refile a tax return You generally can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. How to refile a tax return However, losses in federally declared disaster areas are subject to different rules. How to refile a tax return See Disaster Area Losses , later, for an exception. How to refile a tax return 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. How to refile a tax return Leased property. How to refile a tax return   If you lease property from someone else, you can deduct a loss on the property in the year your liability for the loss is fixed. How to refile a tax return This is true even if the loss occurred or the liability was paid in a different year. How to refile a tax return You are not entitled to a deduction until your liability under the lease can be determined with reasonable accuracy. How to refile a tax return Your liability can be determined when a claim for recovery is settled, adjudicated, or abandoned. How to refile a tax return Example. How to refile a tax return Robert leased a tractor from First Implement, Inc. How to refile a tax return , for use in his farm business. How to refile a tax return The tractor was destroyed by a tornado in June 2012. How to refile a tax return The loss was not insured. How to refile a tax return First Implement billed Robert for the fair market value of the tractor on the date of the loss. How to refile a tax return Robert disagreed with the bill and refused to pay it. How to refile a tax return First Implement later filed suit in court against Robert. How to refile a tax return In 2013, Robert and First Implement agreed to settle the suit for $20,000, and the court entered a judgment in favor of First Implement. How to refile a tax return Robert paid $20,000 in June 2013. How to refile a tax return He can claim the $20,000 as a loss on his 2013 tax return. How to refile a tax return Net operating loss (NOL). How to refile a tax return   If your deductions, including casualty or theft loss deductions, are more than your income for the year, you may have an NOL. How to refile a tax return An NOL can be carried back or carried forward and deducted from income in other years. How to refile a tax return See Publication 536 for more information on NOLs. How to refile a tax return Proof of Loss To deduct a casualty or theft loss, you must be able to prove that there was a casualty or theft. How to refile a tax return You must have records to support the amount you claim for the loss. How to refile a tax return Casualty loss proof. How to refile a tax return   For a casualty loss, your records should show all the following information. How to refile a tax return The type of casualty (car accident, fire, storm, etc. How to refile a tax return ) and when it occurred. How to refile a tax return That the loss was a direct result of the casualty. How to refile a tax return 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. How to refile a tax return Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. How to refile a tax return Theft loss proof. How to refile a tax return   For a theft loss, your records should show all the following information. How to refile a tax return When you discovered your property was missing. How to refile a tax return That your property was stolen. How to refile a tax return That you were the owner of the property. How to refile a tax return Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. How to refile a tax return Figuring a Gain A casualty or theft may result in a taxable gain. How to refile a tax return 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. How to refile a tax return You generally report your gain as income in the year you receive the reimbursement. How to refile a tax return However, depending on the type of property you receive, you may not have to report your gain. How to refile a tax return See Postponing Gain , later. How to refile a tax return Your gain is figured as follows: The amount you receive, minus Your adjusted basis in the property at the time of the casualty or theft. How to refile a tax return 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. How to refile a tax return Amount you receive. How to refile a tax return   The amount you receive includes any money plus the value of any property you receive, minus any expenses you have in obtaining reimbursement. How to refile a tax return It also includes any reimbursement used to pay off a mortgage or other lien on the damaged, destroyed, or stolen property. How to refile a tax return Example. How to refile a tax return A tornado severely damaged your barn. How to refile a tax return The adjusted basis of the barn was $25,000. How to refile a tax return Your insurance company reimbursed you $40,000 for the damaged barn. How to refile a tax return However, you had legal expenses of $2,000 to collect that insurance. How to refile a tax return Your insurance minus your expenses to collect the insurance is more than your adjusted basis in the barn, so you have a gain. How to refile a tax return 1) Insurance reimbursement $40,000 2) Legal expenses 2,000 3) Amount received  (line 1 − line 2) $38,000 4) Adjusted basis 25,000 5) Gain on casualty (line 3 − line 4) $13,000 Other Involuntary Conversions In addition to casualties and thefts, other events cause involuntary conversions of property. How to refile a tax return Some of these are discussed in the following paragraphs. How to refile a tax return Gain or loss from an involuntary conversion of your property is usually recognized for tax purposes. How to refile a tax return You report the gain or deduct the loss on your tax return for the year you realize it. How to refile a tax return However, depending on the type of property you receive, you may not have to report your gain on the involuntary conversion. How to refile a tax return See Postponing Gain , later. How to refile a tax return Condemnation Condemnation is the process by which private property is legally taken for public use without the owner's consent. How to refile a tax return The property may be taken by the federal government, a state government, a political subdivision, or a private organization that has the power to legally take property. How to refile a tax return The owner receives a condemnation award (money or property) in exchange for the property taken. How to refile a tax return A condemnation is a forced sale, the owner being the seller and the condemning authority being the buyer. How to refile a tax return Threat of condemnation. How to refile a tax return   Treat the sale of your property under threat of condemnation as a condemnation, provided you have reasonable grounds to believe that your property will be condemned. How to refile a tax return Main home condemned. How to refile a tax return   If you have a gain because your main home is condemned, you generally can exclude the gain from your income as if you had sold or exchanged your home. How to refile a tax return For information on this exclusion, see Publication 523. How to refile a tax return 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. How to refile a tax return See Postponing Gain , later. How to refile a tax return (You cannot deduct a loss from the condemnation of your main home. How to refile a tax return ) More information. How to refile a tax return   For information on how to figure the gain or loss on condemned property, see chapter 1 in Publication 544. How to refile a tax return Also see Postponing Gain , later, to find out if you can postpone reporting the gain. How to refile a tax return Irrigation Project The sale or other disposition of property located within an irrigation project to conform to the acreage limits of federal reclamation laws is an involuntary conversion. How to refile a tax return Livestock Losses Diseased livestock. How to refile a tax return   If your livestock die from disease, or are destroyed, sold, or exchanged because of disease, even though the disease is not of epidemic proportions, treat these occurrences as involuntary conversions. How to refile a tax return If the livestock were raised or purchased for resale, follow the rules for livestock discussed earlier under Farming Losses . How to refile a tax return Otherwise, figure the gain or loss from these conversions using the rules discussed under Determining Gain or Loss in chapter 8. How to refile a tax return If you replace the livestock, you may be able to postpone reporting the gain. How to refile a tax return See Postponing Gain below. How to refile a tax return Reporting dispositions of diseased livestock. How to refile a tax return   If you choose to postpone reporting gain on the disposition of diseased livestock, you must attach a statement to your return explaining that the livestock were disposed of because of disease. How to refile a tax return You must also include other information on this statement. How to refile a tax return See How To Postpone Gain , later, under Postponing Gain . How to refile a tax return Weather-related sales of livestock. How to refile a tax return   If you sell or exchange livestock (other than poultry) held for draft, breeding, or dairy purposes solely because of drought, flood, or other weather-related conditions, treat the sale or exchange as an involuntary conversion. How to refile a tax return Only livestock sold in excess of the number you normally would sell under usual business practice, in the absence of weather-related conditions, are considered involuntary conversions. How to refile a tax return Figure the gain or loss using the rules discussed under Determining Gain or Loss in chapter 8. How to refile a tax return If you replace the livestock, you may be able to postpone reporting the gain. How to refile a tax return See Postponing Gain below. How to refile a tax return Example. How to refile a tax return It is your usual business practice to sell five of your dairy animals during the year. How to refile a tax return This year you sold 20 dairy animals because of drought. How to refile a tax return The sale of 15 animals is treated as an involuntary conversion. How to refile a tax return    If you do not replace the livestock, you may be able to report the gain in the following year's income. How to refile a tax return This rule also applies to other livestock (including poultry). How to refile a tax return See Sales Caused by Weather-Related Conditions in chapter 3. How to refile a tax return Tree Seedlings If, because of an abnormal drought, the failure of planted tree seedlings is greater than normally anticipated, you may have a deductible loss. How to refile a tax return Treat the loss as a loss from an involuntary conversion. How to refile a tax return The loss equals the previously capitalized reforestation costs you had to duplicate on replanting. How to refile a tax return You deduct the loss on the return for the year the seedlings died. How to refile a tax return Postponing 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, stolen, or other involuntarily converted property. How to refile a tax return Your basis in the new property is generally the same as your adjusted basis in the property it replaces. How to refile a tax return You must ordinarily report the gain on your stolen, destroyed, or other involuntarily converted property if you receive money or unlike property as reimbursement. How to refile a tax return However, you can choose to postpone reporting the gain if you purchase replacement property similar or related in service or use to your destroyed, stolen, or other involuntarily converted property within a specific replacement period. How to refile a tax return If you have a gain on damaged property, you can postpone reporting the gain if you spend the reimbursement to restore the property. How to refile a tax return To postpone reporting all the gain, the cost of your replacement property must be at least as much as the reimbursement you receive. How to refile a tax return 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. How to refile a tax return Example 1. How to refile a tax return In 1985, you constructed a barn to store farm equipment at a cost of $20,000. How to refile a tax return In 1987, you added a silo to the barn at a cost of $15,000 to store grain. How to refile a tax return In May of this year, the property was worth $100,000. How to refile a tax return In June the barn and silo were destroyed by a tornado. How to refile a tax return At the time of the tornado, you had an adjusted basis of $0 in the property. How to refile a tax return You received $85,000 from the insurance company. How to refile a tax return You had a gain of $85,000 ($85,000 – $0). How to refile a tax return You spent $80,000 to rebuild the barn and silo. How to refile a tax return Since this is less than the insurance proceeds received, you must include $5,000 ($85,000 – $80,000) in your income. How to refile a tax return Example 2. How to refile a tax return In 1970, you bought a cabin in the mountains for your personal use at a cost of $18,000. How to refile a tax return You made no further improvements or additions to it. How to refile a tax return When a storm destroyed the cabin this January, the cabin was worth $250,000. How to refile a tax return You received $146,000 from the insurance company in March. How to refile a tax return You had a gain of $128,000 ($146,000 − $18,000). How to refile a tax return You spent $144,000 to rebuild the cabin. How to refile a tax return Since this is less than the insurance proceeds received, you must include $2,000 ($146,000 − $144,000) in your income. How to refile a tax return Buying replacement property from a related person. How to refile a tax return   You cannot postpone reporting a gain from a casualty, theft, or other involuntary conversion if you buy the replacement property from a related person (discussed later). How to refile a tax return This rule applies to the following taxpayers. How to refile a tax return C corporations. How to refile a tax return Partnerships in which more than 50% of the capital or profits interest is owned by C corporations. How to refile a tax return Individuals, partnerships (other than those in (2) above), and S corporations if the total realized gain for the tax year on all involuntarily converted properties on which there are realized gains is more than $100,000. How to refile a tax return For involuntary conversions described in (3) above, gains cannot be offset by any losses when determining whether the total gain is more than $100,000. How to refile a tax return If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. How to refile a tax return If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. How to refile a tax return Exception. How to refile a tax return   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 involuntarily converted property. How to refile a tax return Related persons. How to refile a tax return   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. How to refile a tax return For more information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. How to refile a tax return Death of a taxpayer. How to refile a tax return   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. How to refile a tax return The executor of the estate or the person succeeding to the funds from the involuntary conversion cannot postpone reporting the gain by buying replacement property. How to refile a tax return Replacement Property You must buy replacement property for the specific purpose of replacing your property. How to refile a tax return Your replacement property must be similar or related in service or use to the property it replaces. How to refile a tax return You do not have to use the same funds you receive as reimbursement for your old property to acquire the replacement property. How to refile a tax return If you spend the money you receive for other purposes, and borrow money to buy replacement property, you can still choose to postpone reporting the gain if you meet the other requirements. How to refile a tax return Property you acquire by gift or inheritance does not qualify as replacement property. How to refile a tax return Owner-user. How to refile a tax return   If you are an owner-user, similar or related in service or use means that replacement property must function in the same way as the property it replaces. How to refile a tax return Examples of property that functions in the same way as the property it replaces are a home that replaces another home, a dairy cow that replaces another dairy cow, and farm land that replaces other farm land. How to refile a tax return A grinding mill that replaces a tractor does not qualify. How to refile a tax return Neither does a breeding or draft animal that replaces a dairy cow. How to refile a tax return Soil or other environmental contamination. How to refile a tax return   If, because of soil or other environmental contamination, it is not feasible for you to reinvest your insurance money or other proceeds from destroyed or damaged livestock in property similar or related in service or use to the livestock, you can treat other property (including real property) used for farming purposes, as property similar or related in service or use to the destroyed or damaged livestock. How to refile a tax return Weather-related conditions. How to refile a tax return   If, because of drought, flood, or other weather-related conditions, it is not feasible for you to reinvest the insurance money or other proceeds in property similar or related in service or use to the livestock, you can treat other property (excluding real property) used for farming purposes, as property similar or related in service or use to the livestock you disposed of. How to refile a tax return Example. How to refile a tax return Each year you normally sell 25 cows from your beef herd. How to refile a tax return However, this year you had to sell 50 cows. How to refile a tax return This is because a severe drought significantly reduced the amount of hay and pasture yield needed to feed your herd for the rest of the year. How to refile a tax return Because, as a result of the severe drought, it is not feasible for you to use the proceeds from selling the extra cows to buy new cows, you can treat other property (excluding real property) used for farming purposes, as property similar or related in service or use to the cows you sold. How to refile a tax return Standing crop destroyed by casualty. How to refile a tax return   If a storm or other casualty destroyed your standing crop and you use the insurance money to acquire either another standing crop or a harvested crop, this purchase qualifies as replacement property. How to refile a tax return The costs of planting and raising a new crop qualify as replacement costs for the destroyed crop only if you use the crop method of accounting (discussed in chapter 2). How to refile a tax return In that case, the costs of bringing the new crop to the same level of maturity as the destroyed crop qualify as replacement costs to the extent they are incurred during the replacement period. How to refile a tax return Timber loss. How to refile a tax return   Standing timber you bought with the proceeds from the sale of timber downed as a result of a casualty, such as high winds, earthquakes, or volcanic eruptions, qualifies as replacement property. How to refile a tax return If you bought the standing timber within the replacement period, you can postpone reporting the gain. How to refile a tax return Business or income-producing property located in a federally declared disaster area. How to refile a tax return   If your destroyed business or income-producing property was located in a federally declared disaster area, any tangible replacement property you acquire for use in any business is treated as similar or related in service or use to the destroyed property. How to refile a tax return For more information, see Disaster Area Losses in Publication 547. How to refile a tax return Substituting replacement property. How to refile a tax return   Once you have acquired qualified replacement property that you designate as replacement property in a statement attached to your tax return, you cannot substitute other qualified replacement property. How to refile a tax return This is true even if you acquire the other property within the replacement period. How to refile a tax return However, if you discover that the original replacement property was not qualified replacement property, you can, within the replacement period, substitute the new qualified replacement property. How to refile a tax return Basis of replacement property. How to refile a tax return   You must reduce the basis of your replacement property (its cost) by the amount of postponed gain. How to refile a tax return In this way, tax on the gain is postponed until you dispose of the replacement property. How to refile a tax return Replacement Period To postpone reporting your gain, you must buy replacement property within a specified period of time. How to refile a tax return This is the replacement period. How to refile a tax return The replacement period begins on the date your property was damaged, destroyed, stolen, sold, or exchanged. How to refile a tax return The replacement period generally ends 2 years after the close of the first tax year in which you realize any part of your gain from the involuntary conversion. How to refile a tax return Example. How to refile a tax return You are a calendar year taxpayer. How to refile a tax return While you were on vacation, farm equipment that cost $2,200 was stolen from your farm. How to refile a tax return You discovered the theft when you returned to your farm on November 11, 2012. How to refile a tax return Your insurance company investigated the theft and did not settle your claim until January 5, 2013, when they paid you $3,000. How to refile a tax return You first realized a gain from the reimbursement for the theft during 2013, so you have until December 31, 2015, to replace the property. How to refile a tax return Main home in disaster area. How to refile a tax return   For your main home (or its contents) located in a federally declared disaster area, the replacement period ends 4 years after the close of the first tax year in which you realize any part of your gain from the involuntary conversion. How to refile a tax return See Disaster Area Losses , later. How to refile a tax return Property in the Midwestern disaster areas. How to refile a tax return   For property located in the Midwestern disaster areas (defined in Table 4 in the 2008 Publication 547) that was destroyed, damaged, stolen, or condemned, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. How to refile a tax return This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Midwestern disaster areas. How to refile a tax return Property in the Kansas disaster area. How to refile a tax return   For property located in the Kansas disaster area that was destroyed, damaged, stolen, or condemned after May 3, 2007, as a result of the Kansas storms and tornadoes, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. How to refile a tax return This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Kansas disaster area. How to refile a tax return Property in the Hurricane Katrina disaster area. How to refile a tax return   For property located in the Hurricane Katrina disaster area that was destroyed, damaged, stolen, or condemned after August 24, 2005, as a result of Hurricane Katrina, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. How to refile a tax return This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. How to refile a tax return Weather-related sales of livestock in an area eligible for federal assistance. How to refile a tax return   For the sale or exchange of livestock due to drought, flood, or other weather-related conditions in an area eligible for federal assistance, the replacement period ends 4 years after the close of the first tax year in which you realize any part of your gain from the sale or exchange. How to refile a tax return The IRS may extend the replacement period on a regional basis if the weather-related conditions continue for longer than 3 years. How to refile a tax return   For information on extensions of the replacement period because of persistent drought, see Notice 2006-82, 2006-39 I. How to refile a tax return R. How to refile a tax return B. How to refile a tax return 529, available at  www. How to refile a tax return irs. How to refile a tax return gov/irb/2006-39_IRB/ar11. How to refile a tax return html. How to refile a tax return For a list of counties for which exceptional, extreme, or severe drought was reported during the 12 months ending August 31, 2013, see Notice 2013-62, available at IRS. How to refile a tax return gov. How to refile a tax return Condemnation. How to refile a tax return   The replacement period for a condemnation begins on the earlier of the following dates. How to refile a tax return The date on which you disposed of the condemned property. How to refile a tax return The date on which the threat of condemnation began. How to refile a tax return The replacement period generally ends 2 years after the close of the first tax year in which any part of the gain on the condemnation is realized. How to refile a tax return But see Main home in disaster area , Property in the Midwestern disaster areas , Property in the Kansas disaster area , and Property in the Hurricane Katrina disaster area , earlier, for exceptions. How to refile a tax return Business or investment real property. How to refile a tax return   If real property held for use in a trade or business or for investment (not including property held primarily for sale) is condemned, the replacement period ends 3 years after the close of the first tax year in which any part of the gain on the condemnation is realized. How to refile a tax return Extension. How to refile a tax return   You can apply for an extension of the replacement period. How to refile a tax return Send your written application to the Internal Revenue Service Center where you file your tax return. How to refile a tax return See your tax return instructions for the address. How to refile a tax return Include all the details about your need for an extension. How to refile a tax return Make your application before the end of the replacement period. How to refile a tax return However, you can file an application within a reasonable time after the replacement period ends if you can show a good reason for the delay. How to refile a tax return You will get an extension of the replacement period if you can show reasonable cause for not making the replacement within the regular period. How to refile a tax return How To Postpone Gain You postpone reporting your gain by reporting your choice on your tax return for the year you have the gain. How to refile a tax return You have the gain in the year you receive insurance proceeds or other reimbursements that result in a gain. How to refile a tax return Required statement. How to refile a tax return   You should attach a statement to your return for the year you have the gain. How to refile a tax return This statement should include all the following information. How to refile a tax return The date and details of the casualty, theft, or other involuntary conversion. How to refile a tax return The insurance or other reimbursement you received. How to refile a tax return How you figured the gain. How to refile a tax return Replacement property acquired before return filed. How to refile a tax return   If you acquire replacement property before you file your return for the year you have the gain, your statement should also include detailed information about all the following items. How to refile a tax return The replacement property. How to refile a tax return The postponed gain. How to refile a tax return The basis adjustment that reflects the postponed gain. How to refile a tax return Any gain you are reporting as income. How to refile a tax return Replacement property acquired after return filed. How to refile a tax return   If you intend to buy replacement property after you file your return for the year you realize gain, your statement should also say that you are choosing to replace the property within the required replacement period. How to refile a tax return   You should then attach another statement to your return for the year in which you buy the replacement property. How to refile a tax return This statement should contain detailed information on the replacement property. How to refile a tax return If you acquire part of your replacement property in one year and part in another year, you must attach a statement to each year's return. How to refile a tax return Include in the statement detailed information on the replacement property bought in that year. How to refile a tax return Reporting weather-related sales of livestock. How to refile a tax return   If you choose to postpone reporting the gain on weather-related sales or exchanges of livestock, show all the following information on a statement attached to your return for the tax year in which you first realize any of the gain. How to refile a tax return Evidence of the weather-related conditions that forced the sale or exchange of the livestock. How to refile a tax return The gain realized on the sale or exchange. How to refile a tax return The number and kind of livestock sold or exchanged. How to refile a tax return The number of livestock of each kind you would have sold or exchanged under your usual business practice. How to refile a tax return   Show all the following information and the preceding information on the return for the year in which you replace the livestock. How to refile a tax return The dates you bought the replacement property. How to refile a tax return The cost of the replacement property. How to refile a tax return Description of the replacement property (for example, the number and kind of the replacement livestock). How to refile a tax return Amended return. How to refile a tax return   You must file an amended return (Form 1040X) for the tax year of the gain in either of the following situations. How to refile a tax return You do not acquire replacement property within the replacement period, plus extensions. How to refile a tax return On this amended return, you must report the gain and pay any additional tax due. How to refile a tax return You acquire replacement property within the required replacement period, plus extensions, but at a cost less than the amount you receive from the casualty, theft, or other involuntary conversion. How to refile a tax return On this amended return, you must report the part of the gain that cannot be postponed and pay any additional tax due. How to refile a tax return Disaster Area Losses Special rules apply to federally declared disaster area losses. How to refile a tax return A federally declared disaster is a disaster that occurred in an area declared by the President to be eligible for federal assistance under the Robert T. How to refile a tax return Stafford Disaster Relief and Emergency Assistance Act. How to refile a tax return It includes a major disaster or emergency declaration under the act. How to refile a tax return A list of the areas warranting public or individual assistance (or both) under the Act is available at the Federal Emergency Management Agency (FEMA) web site at www. How to refile a tax return fema. How to refile a tax return gov. How to refile a tax return This part discusses the special rules for when to deduct a disaster area loss and what tax deadlines may be postponed. How to refile a tax return For other special rules, see Disaster Area Losses in Publication 547. How to refile a tax return When to deduct the loss. How to refile a tax return   You generally must deduct a casualty loss in the year it occurred. How to refile a tax return However, if you have a deductible loss from a disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct that loss on your return or amended return for the tax year immediately preceding the tax year in which the disaster happened. How to refile a tax return If you make this choice, the loss is treated as having occurred in the preceding year. How to refile a tax return    Claiming a qualifying disaster loss on the previous year's return may result in a lower tax for that year, often producing or increasing a cash refund. How to refile a tax return   You must make the choice to take your casualty loss for the disaster in the preceding year by the later of the following dates. How to refile a tax return The due date (without extensions) for filing your tax return for the tax year in which the disaster actually occurred. How to refile a tax return The due date (with extensions) for the return for the preceding tax year. How to refile a tax return Federal disaster relief grants. How to refile a tax return   Do not include post-disaster relief grants received under the Robert T. How to refile a tax return Stafford Disaster Relief and Emergency Assistance Act in your income if the grant payments are made to help you meet necessary expenses or serious needs for medical, dental, housing, personal property, transportation, or funeral expenses. How to refile a tax return Do not deduct casualty losses or medical expenses to the extent they are specifically reimbursed by these disaster relief grants. How to refile a tax return If the casualty loss was specifically reimbursed by the grant and you received the grant after the year in which you deducted the casualty loss, see Reimbursement received after deducting loss , earlier. How to refile a tax return Unemployment assistance payments under the Act are taxable unemployment compensation. How to refile a tax return Qualified disaster relief payments. How to refile a tax return   Qualified disaster relief payments are not included in the income of individuals to the extent any expenses compensated by these payments are not otherwise compensated for by insurance or other reimbursement. How to refile a tax return These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). How to refile a tax return No withholding applies to these payments. How to refile a tax return   Qualified disaster relief payments include payments you receive (regardless of the source) for the following expenses. How to refile a tax return Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a federally declared disaster. How to refile a tax return Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a federally declared disaster. How to refile a tax return (A personal residence can be a rented residence or one you own. How to refile a tax return ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a federally declared disaster. How to refile a tax return   Qualified disaster relief payments include amounts paid by a federal, state, or local government in connection with a federally declared disaster to individuals affected by the disaster. How to refile a tax return    Qualified disaster relief payments do not include: Payments for expenses otherwise paid for by insurance or other reimbursements, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. How to refile a tax return Qualified disaster mitigation payments. How to refile a tax return   Qualified disaster mitigation payments made under the Robert T. How to refile a tax return Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not included in income. How to refile a tax return These are payments you, as a property owner, receive to reduce the risk of future damage to your property. How to refile a tax return You cannot increase your basis in property, or take a deduction or credit, for expenditures made with respect to those payments. How to refile a tax return Sale of property under hazard mitigation program. How to refile a tax return   Generally, if you sell or otherwise transfer property, you must recognize any gain or loss for tax purposes unless the property is your main home. How to refile a tax return You report the gain or deduct the loss on your tax return for the year you realize it. How to refile a tax return (You cannot deduct a loss on personal-use property unless the loss resulted from a casualty, as discussed earlier. How to refile a tax return ) However, if you sell or otherwise transfer property to the Federal Government, a state or local government, or an Indian tribal government under a hazard mitigation program, you can choose to postpone reporting the gain if you buy qualifying replacement property within a certain period of time. How to refile a tax return See Postponing Gain , earlier, for the rules that apply. How to refile a tax return Other federal assistance programs. How to refile a tax return    For more information about other federal assistance programs, see Crop Insurance and Crop Disaster Payments and Feed Assistance and Payments in chapter 3 earlier. How to refile a tax return Postponed tax deadlines. How to refile a tax return   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. How to refile a tax return The tax deadlines the IRS may postpone include those for filing income, excise, and employment tax returns, paying income, excise, and employment taxes, and making contributions to a traditional IRA or Roth IRA. How to refile a tax return   If any tax deadline is postponed, the IRS will publicize the postponement in your area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). How to refile a tax return Go to http://www. How to refile a tax return irs. How to refile a tax return gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. How to refile a tax return Who is eligible. How to refile a tax return   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. How to refile a tax return Any individual whose main home is located in a covered disaster area (defined next). How to refile a tax return Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. How to refile a tax return Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered disaster area. How to refile a tax return 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. How to refile a tax return The main home or principal place of business does not have to be located in the covered disaster area. How to refile a tax return 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. How to refile a tax return The spouse on a joint return with a taxpayer who is eligible for postponements. How to refile a tax return Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose necessary records to meet a postponed tax deadline are located in the covered disaster area. How to refile a tax return Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. How to refile a tax return Any other person determined by the IRS to be affected by a federally declared disaster. How to refile a tax return Covered disaster area. How to refile a tax return   This is an area of a federally declared disaster area in which the IRS has decided to postpone tax deadlines for up to 1 year. How to refile a tax return Abatement of interest and penalties. How to refile a tax return   The IRS may abate the interest and penalties on the underpaid income tax for the length of any postponement of tax deadlines. How to refile a tax return Reporting Gains and Losses You will have to file one or more of the following forms to report your gains or losses from involuntary conversions. How to refile a tax return Form 4684. How to refile a tax return   Use this form to report your gains and losses from casualties and thefts. How to refile a tax return Form 4797. How to refile a tax return   Use this form to report involuntary conversions (other than from casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. How to refile a tax return Also use this form if you have a gain from a casualty or theft on trade, business or income-producing property held for more than 1 year and you have to recapture some or all of your gain as ordinary income. How to refile a tax return Form 8949. How to refile a tax return   Use this form to report gain from an involuntary conversion (other than from casualty or theft) of personal-use property. How to refile a tax return Schedule A (Form 1040). How to refile a tax return   Use this form to deduct your losses from casualties and thefts of personal-use property and income-producing property, that you reported on Form 4684. How to refile a tax return Schedule D (Form 1040). How to refile a tax return   Use this form to carry over the following gains. How to refile a tax return Net gain shown on Form 4797 from an involuntary conversion of business property held for more than 1 year. How to refile a tax return Net gain shown on Form 4684 from the casualty or theft of personal-use property. How to refile a tax return    Also use this form to figure the overall gain or loss from transactions reported on Form 8949. How to refile a tax return Schedule F (Form 1040). How to refile a tax return   Use this form to deduct your losses from casualty or theft of livestock or produce bought for sale under Other expenses in Part II, line 32, if you use the cash method of accounting and have not otherwise deducted these losses. How to refile a tax return Prev  Up  Next   Home   More Online Publications