File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

I Need To File 2012 Taxes

Tax Amendment Form 1040xIncome Tax Forms 2010Myfreetaxes ComTurbo TaxFederal Tax Forms 1040 EzDid Not File 2011 Taxes1040ez2013How To File 2012 Taxes Late1040 Tax Forms For 20121040ez Form 2010Free 2010 Tax ReturnFile State Taxes OnlineDo You File Taxes If You Are UnemployedPrior Year Tax FormsFree State Tax UsaFree Income Tax PreparationH7r Block Free FileIrs Tax FormsH & R Free FileHow To File An Amended Tax Return For 2011 Turbotax2014 Ez Tax FormIncome Tax Return FilingFiling For Taxes As A StudentTurbo Tax 1040nrWhere Can I File My State Taxes Only2012 Federal Tax FormsStudent Tax InformationHow To File Tax ReturnHr Block State TaxesFile Free State Taxes OnlineH And R Block 2012 Tax ReturnFederal Income Tax Forms 1040ezFree Online Income Tax FilingEfile ComTaxes HrblockTaxaid ComFile 2012 State Taxes FreeState Income Tax FormTaxes For 2011How Do You Amend Your Taxes Online

I Need To File 2012 Taxes

I need to file 2012 taxes Publication 3402 - Additional Material Prev  Up  Next   Home   More Online Publications
Español

Consumer Guides and Protection

A to Z resources on consumer guides and protection.


A

B

C

D

E

F

G

H

I

K

L

M

N

P

R

S

T

U

W

The I Need To File 2012 Taxes

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