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Irs Gov Freefile State Taxes

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Irs Gov Freefile State Taxes

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

The Irs Gov Freefile State Taxes

Irs gov freefile state taxes Publicación 4492(SP) - Introductory Material Tabla de contenidos Introducción Artículos de interés - A usted quizá le interese ver: Introducción En esta publicación se explican las disposiciones principales de la Katrina Emergency Tax Relief Act of 2005 (Ley de Alivio Tributario para Desastres Causados por el Huracán Katrina del 2005) y la Gulf Opportunity Zone Act of 2005 (Ley de la Zona de Oportunidad del Golfo del 2005). Irs gov freefile state taxes Artículos de interés - A usted quizá le interese ver: Publicación 526 Charitable Contributions (Contribuciones Caritativas), en inglés 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts (Pérdidas Netas de Operación (NOL) para Personas Físicas, Caudales Hereditarios y Fideicomisos), en inglés 547(SP) Hechos Fortuitos, Desastres y Robos, en español 946 How to Depreciate Property (Cómo Depreciar los Bienes), en inglés Formas (e instrucciones) 4506Request for Copy of Tax Return (Solicitud de una Copia de la Declaración de Impuestos), en inglés 4506-TRequest for Transcript of Tax Return (Solicitud de un Apógrafo de la Declaración de Impuestos), en inglés 4684Casualties and Thefts (Hechos Fortuitos y Robos), en inglés 5884Work Opportunity Credit (Crédito por Oportunidad de Trabajo), en inglés 5884-ACredits for Employers Affected by Hurricane Katrina, Rita, or Wilma (Créditos para Patronos o Empleadores Afectados por el Huracán Katrina, Rita o Wilma), en inglés 8863Education Credits (Hope and Lifetime Learning Credits) (Créditos por Enseñanza Superior (Crédito Hope y Crédito Perpetuo (Vitalicio) por Aprendizaje)), en inglés 8914Exemption Amount for Taxpayers Housing Individuals Displaced by Hurricane Katrina (Cantidad de la Exención para Contribuyentes dando Alojamiento a Personas Desplazadas por el Huracán Katrina), en inglés 8915Qualified Hurricane Retirement Plan Distributions and Repayments (Distribuciones y Devoluciones (Reintegros) de Pagos Calificados de Planes de Jubilación a Causa de un Huracán), en inglés Anterior  Subir  Siguiente   Inicio   More Online Publications