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

State Income Tax Rate

Tax Act 2011 FreeState Tax Return OnlyForm 1040x InstructionsFirst Time Filing Taxes College StudentFile An Amended Tax ReturnHandr BlockWhere Can You File State Taxes For Free2013 1040ez Form InstructionsIrs Gov FormsAmend My 2011 Tax ReturnFiling Back Taxes For FreeFile Taxes 2014How To Amend 10401040x Form For 2010Revised Tax ReturnIrs Gov FreefileHow To File A Amended ReturnHr Block Com2010 Tax ActFile 2013 State TaxesHelp Filling Out 1040x1040ez Tax FormTurbotax Amended ReturnHow Do I Get 2011 Tax FormsE File Tax ReturnFilling Out A 1040ezFree H&r BlockIrs Gov EfileH&r Block For MilitaryEz Tax Form OnlineMy Free Taxes ComFile State TaxesIrs 1040ez InstructionsIncome Tax1040ez Forms And Instructions1040ez Tax Forms To PrintTurbo Tax 2006File Extension For Taxes 2012Tax Act 2012 ReturnState Taxes For Free

State Income Tax Rate

State income tax rate Part One -   Fuel Taxes and Fuel Tax Credits and Refunds Chapter 1 defines the types of fuel, taxable events, and exemptions or exceptions to the fuel taxes. State income tax rate Chapter 2 provides information on, and definitions of, the nontaxable uses and explains how to make a claim. State income tax rate Table of Contents 1. State income tax rate   Fuel TaxesDefinitions Information Returns Registration RequirementsAdditional information. State income tax rate Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. State income tax rate Reseller statement. State income tax rate Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. State income tax rate Deep-draft ocean-going vessels. State income tax rate Passenger vessels. State income tax rate Ocean-going barges. State income tax rate State or local governments. State income tax rate Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel 2. State income tax rate   Fuel Tax Credits and RefundsGasoline and Aviation Gasoline Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)Sales by Registered Ultimate Vendors Diesel-Water Fuel Emulsion Kerosene for Use in AviationSales by Registered Ultimate Vendors Other Fuels (Including Alternative Fuels) Refunds of Second TaxOptional reporting. State income tax rate Providing information. State income tax rate Definitions of Nontaxable UsesCustom application of fertilizer and pesticide. State income tax rate Fuel used between airfield and farm. State income tax rate Fuel not used for farming. State income tax rate Vehicles not considered highway vehicles. State income tax rate Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture CreditHow to Claim the Credit Filing Claims Claiming A Refund Claiming a Credit on Form 4136 Including the Credit or Refund in Income Prev  Up  Next   Home   More Online Publications
Español

Consumer Resources for Military Personnel

Today's military family faces many common consumer challenges, as well as the additional stress associated with frequent separation. To ease such difficulties, Family Centers, along with the other programs described below, provide help and support for military families.


U.S. Military Family Centers

Located on most military installations, Family Centers provide information, life skills education, and support services to military members and their families. One key function of a Family Center is to link people with appropriate services available in the local community and/or through state and federal assistance programs such as those related to health and human services, school systems, employment assistance, law enforcement and recreation.

Airman and Family Readiness Centers (A&FRC)
A&FRCs are located on every Air Force Installation and offer a wealth of to Airmen and their families. One-on-one consultations are available on information such as financial management, transition assistance, spouse employment, readiness, deployment, family life and relocation assistance.

Marine Corps Community Services (MCCS)
Headquarters and Service Battalion, Henderson Hall
1550 Southgate Rd.
Building 29, Room 305 Arlington, VA 22214-5103
Phone: 703-614-7171
The Personal and Family Readiness Division (MR) provides a number of Marine Corps personnel service programs, such as Casualty Assistance, DEERS Dependency Determination, Voting Assistance, Postal Services, and Personal Claims.

Commander, Navy Installations Command
Fleet and Family Support Programs
716 Sicard St., SE, Suite 1000
Washington Navy Yard, DC 20374-5140
The Fleet and Family Support Program delivered by Commander, Navy Installations Command, provides support, references, information and a wide range of assistance for members of the Navy and their families to meet the unique challenges of the military lifestyle. Up-to-date news, messages, links and resources are provided, including assistance with relocation, employment, career and benefits, healthy lifestyles, casualties, domestic violence, and retirement.

U.S. Army
Family and Morale, Welfare and Recreation Command
Directorate, Army Community Service
4700 King St., NW
Alexandria, VA 22302
The Army provides comprehensive information on the support available to personnel and families, including resources to strengthen home and family life, Army basic training, lifelong learning, finances, employment, relevant news, along with links to other resources

U.S. Coast Guard
Office of Worklife
2100 Second St., SW, Stop 7013
Washington, DC 20593-7001
Phone: 202-267-6160
The U.S. Coast Guard can provide key resources, including core publications, career information and related news, as well as comprehensive background about its mission, community services, history, photos and reports.

Back to Top

Useful Websites

Military OneSource is a comprehensive resource for military members and their families relating to nearly every aspect of personal and professional life, with topics that range from health and wellness, finances, family matters and resiliency.  The website includes blogs, discussion boards, podcasts and live chat. You may also call them at 1-800-342-9647.

National Resource Directory provides wounded, ill and injured service members, veterans, their families and those who support them with a web-based yellow book. It provides information on, and access to, the full range of medical and non-medical services and resources needed to achieve their personal and professional goals across the transitions from recovery to rehabilitation to community reintegration. The National Resource Directory is an online partnership of the Departments of Defense, Labor and Veterans Affairs and provides links to the services and resources of federal, state and local governmental agencies; veterans' service, non-profit, community based and philanthropic organizations; professional associations and academic institutions.

Back to Top

Additional Consumer Resources for Military Personnel

Be sure to take advantage of resources designed for military personnel and their families. Check with family readiness centers on your installation to get access to financial help.

The Consumer Financial Protection Bureau’s Office of Servicemember Affairs offers resources to plan your financial future and prevent being victim of fraud.

The Better Business Bureau also offers consumer education and advocacy to service members through their Military Line®.

Back to Top

Predatory Lending Restrictions

As of October 1, 2007, the Talent Nelson amendment to the John Warner National Defense Authorization Act allows the Department of Defense to regulate the terms of payday loans, vehicle title loans and tax refund loans to active duty service members and their dependents. These three products have high interest rates, coupled with short payback terms.

The rule for service members and their dependents limits the annual percentage rate on these loans to 36%. All fees and charges should be included in the calculation of the rate. The rule also prohibits contracts requiring the use of a check or access to a bank account, mandatory arbitration, and unreasonable legal notice. Any credit agreement subject to the regulation that fails to comply with this regulation is void and cannot be enforced. The rule further provides that a creditor or assignee that knowingly violates the regulation shall be subject to certain criminal penalties.

The Department of Defense strongly encourages service members and their families to choose alternatives which are designed to help resolve financial crises, rebuild credit ratings and establish savings for emergencies. Payday loans, vehicle title loans and tax refund loans can propel an already over extended borrower into a deeper spiral of debt.

Back to Top

The State Income Tax Rate

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