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2010 1040ez Tax Form

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2010 1040ez Tax Form

2010 1040ez tax form Publication 179 - Introductory Material Table of Contents Acontecimientos futuros Qué hay de nuevo Recordatorios Calendario Introduction Acontecimientos futuros Si desea obtener la información más reciente sobre todo acontecimiento relacionado con la Publicación 179, tal como legislación promulgada después de que ésta fue publicada, acceda a www. 2010 1040ez tax form irs. 2010 1040ez tax form gov/pub179. 2010 1040ez tax form Qué hay de nuevo Contribuciones al Seguro Social y al Medicare para el 2014. 2010 1040ez tax form  La tasa de contribución para el Seguro Social permanece en 6. 2010 1040ez tax form 2% tanto para el empleado como para el patrono. 2010 1040ez tax form La base límite de salario para el Seguro Social es $117,000. 2010 1040ez tax form La tasa de la contribución al Medicare es 1. 2010 1040ez tax form 45% tanto para la parte del empleado como la del patrono, la misma tasa que correspondió para el año 2013. 2010 1040ez tax form No hay límite sobre la cantidad de salarios sujetos a la contribución al Medicare. 2010 1040ez tax form Las contribuciones al Seguro Social y al Medicare se aplican a los salarios de empleados domésticos a quienes usted les paga $1,900 o más en efectivo o de una forma equivalente de remuneración. 2010 1040ez tax form Las contribuciones al Seguro Social y al Medicare se aplican a los trabajadores electorales a quienes se les paga $1,600 o más en efectivo o una remuneración equivalente. 2010 1040ez tax form Cambio de parte responsable. 2010 1040ez tax form  Comenzando el 1 de enero del 2014, toda entidad jurídica que tiene asignado un número patronal tiene que presentar el Formulario 8822-B Change of Address or Responsible Party—Business (Cambio de dirección o Parte Responsable— de negocios), en inglés, para informar si ha cambiado la parte responsable del negocio. 2010 1040ez tax form El Formulario 8822-B tiene que presentarse dentro de los 60 días que cambió la parte responsable. 2010 1040ez tax form Si el cambio de la parte responsable ocurrió antes del año 2014 y no se ha notificado el cambio anteriormente al IRS presente el Formulario 8822-B antes del 1 de marzo del 2014 e informe solamente el cambio más reciente. 2010 1040ez tax form Para la definición de “parte reponsable” vea las Instrucciones del Formulario SS-4PR Solicitud de Número de Identificación Patronal (EIN). 2010 1040ez tax form Matrimonio entre personas del mismo sexo. 2010 1040ez tax form . 2010 1040ez tax form  Para propósitos de las contribuciones federales, las personas del mismo sexo se consideran casados legalmente ​​si se casaron en un estado (o país extranjero) cuyas leyes autorizan el matrimonio de personas del mismo sexo, aunque el estado (o país extranjero) en el que ahora viven no reconozca el matrimonio entre personas del mismo sexo. 2010 1040ez tax form Para obtener más información, consulte el Revenue Ruling 2013-17 (Reglamento de Rentas Internas 2013–17) disponible en www. 2010 1040ez tax form irs. 2010 1040ez tax form gov/irb/2013-38_IRB/ar07. 2010 1040ez tax form html. 2010 1040ez tax form El Notice 2013-61 (Aviso 2013-61) establece los procedimientos administrativos especiales para los patronos hacer reclamaciones para el reembolso o los ajustes de los pagos en exceso al Seguro Social y al Medicare con respecto a ciertos beneficios entre cónyuges del mismo sexo antes de la expiración del periodo de prescripción. 2010 1040ez tax form El Aviso 2013-61 que aparece en la página 432 del Internal Revenue Bulletin (Boletín de Rentas Internas 2013-44), en inglés, está disponible en www. 2010 1040ez tax form irs. 2010 1040ez tax form gov/irb/2013-44_IRB/ar10. 2010 1040ez tax form html. 2010 1040ez tax form Recordatorios Retención de la Contribución Adicional al Medicare. 2010 1040ez tax form  Además de la retención de la contribución Medicare de 1. 2010 1040ez tax form 45%, usted tiene que retener la Contribución Adicional al Medicare de 0. 2010 1040ez tax form 9% de los salarios en exceso de $200,000 que le paga a un empleado en un año natural. 2010 1040ez tax form Se le requiere a usted que comience a retener la Contribución Adicional al Medicare en el período de paga en el cual usted le paga salarios en exceso de $200,000 a un empleado. 2010 1040ez tax form Continúe reteniendo esta Contribución Adicional al Medicare en todo período de paga hasta que finalice el año natural. 2010 1040ez tax form La Contribución Adicional al Medicare sólo se le impone al empleado. 2010 1040ez tax form No hay una porción correspondiente al patrono de la Contribución Adicional al Medicare. 2010 1040ez tax form Todos los salarios que están sujetos a la contribución Medicare, están sujetos a la retención de la Contribución Adicional al Medicare si éstos exceden el límite de $200,000. 2010 1040ez tax form Si desea más información sobre cuáles salarios están sujetos a la Contribución Adicional al Medicare, vea la tabla Reglas especiales para varias clases de servicios y de pagos , en el apartado 15 de esta publicación. 2010 1040ez tax form Para más información, sobre la Contribución Adicional al Medicare visite IRS. 2010 1040ez tax form gov y escriba “ Additional Medicare Tax ” en inglés, en la casilla Search (Buscar). 2010 1040ez tax form La información está disponible en inglés. 2010 1040ez tax form El crédito contributivo por oportunidad de trabajo para organizaciones calificadas exentas de contribución que contratan a veteranos calificados ha sido extendido. 2010 1040ez tax form . 2010 1040ez tax form  El crédito contributivo por oportunidad de trabajo está disponible para veteranos desempleados que reúnan los requisitos que comiencen a trabajar antes del 1 de enero de 2014. 2010 1040ez tax form Anteriormente, el crédito estaba disponible para veteranos desempleados quienes comenzaron a trabajar a partir del 22 de noviembre de 2011, y antes del 1 de enero de 2013. 2010 1040ez tax form Las organizaciones exentas de contribuciones calificadas que contratan veteranos desempleados que reúnan los requisitos pueden reclamar el crédito contributivo por oportunidad de trabajo contra su contribución sobre la nómina utilizando el Formulario 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans (Crédito por oportunidad de trabajo para organizaciones exentas de contribuciones calificadas que contratan a veteranos calificados), en inglés. 2010 1040ez tax form Si desea más información, visite IRS. 2010 1040ez tax form gov y escriba “work opportunity tax credit” (crédito contributivo por oportunidad de trabajo), en inglés, en la casilla Search (Buscar). 2010 1040ez tax form La información está disponible en inglés. 2010 1040ez tax form Externalización de las obligaciones de la nómina. 2010 1040ez tax form . 2010 1040ez tax form  Los patronos son responsables de asegurar que las planillas de contribución se radiquen y que los depósitos y pagos se hagan, aun si el patrono contrata los servicios de un tercero para hacerlo. 2010 1040ez tax form El patrono sigue siendo el responsable aun si el tercero no cumple con la acción requerida. 2010 1040ez tax form Si opta por externalizar cualquier parte de su nómina y las obligaciones relacionadas con las contribuciones (es decir, retención, declarar y pagar las contribuciones al Seguro Social, al Medicare y FUTA) a un tercero pagador, tal como un proveedor de servicios de nómina o agente de reportación, visite el sitio web IRS. 2010 1040ez tax form gov y escriba “outsourcing payroll duties” (externalización de las obligaciones de nómina) en la casilla “Search” (Buscar), para información útil sobre este tema. 2010 1040ez tax form Dicha información está disponible en inglés. 2010 1040ez tax form El crédito de asistencia para las primas COBRA. 2010 1040ez tax form  El crédito por asistencia en los pagos de las primas COBRA se aplica a las primas pagadas por un máximo de 15 meses para los empleados que fueron despedidos entre el 1 de septiembre de 2008 y el 31 de mayo de 2010. 2010 1040ez tax form Vea COBRA premium assistance credit (Crédito de asistencia para las primas COBRA) en inglés, en la Publicación 15. 2010 1040ez tax form Vea la sección Crédito de asistencia para las primas de COBRA para detalles sobre el crédito. 2010 1040ez tax form El Formulario 944-PR está descontinuado. 2010 1040ez tax form  El Formulario 944-PR, Planilla para la Declaración Federal ANUAL del Patrono, ya no estará disponible después de 2011. 2010 1040ez tax form A partir del año contributivo 2012, los patronos que anteriormente presentaban el Formulario 944-PR presentarán anualmente el Formulario 944(SP), Declaración Federal ANUAL de Impuestos del Patrono o Empleador. 2010 1040ez tax form Por otra parte, los contribuyentes pueden solicitar que se les permita la radicación trimestral con el Formulario 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono, en vez del Formulario 944(SP) (o el Formulario 944, en inglés). 2010 1040ez tax form Para más información, consulte las Instrucciones para el Formulario 944(SP). 2010 1040ez tax form Para solicitar que se le permita radicar los formularios trimestrales 941-PR para informar sus contribuciones al Seguro Social y Medicare del año 2014, debe llamar al IRS al 1-800-829-4933 o al 267-941-1000 (llamada con cargos) a más tardar el 1 de abril de 2014. 2010 1040ez tax form O, puede enviar una solicitud por escrito (el matasellos debe estar fechado en o antes del 15 de marzo de 2014). 2010 1040ez tax form Después de comunicarse con el IRS, el IRS le enviará una notificación por escrito indicándole que su requisito de presentación ha cambiado. 2010 1040ez tax form Si usted no recibe este aviso, debe presentar el Formulario 944(SP) para el año natural 2014. 2010 1040ez tax form Para más información, consulte ¿Qué ocurre si quiere presentar Formularios 941, 941-SS o 941-PR en lugar del Formulario 944 (en inglés) o 944(SP)?, en las Instrucciones para el Formulario 944(SP) de 2013. 2010 1040ez tax form Usted tiene que recibir un aviso escrito del IRS para poder radicar el Formulario 944(SP). 2010 1040ez tax form  Si usted ha estado radicando los Formularios 941-PR y cree que sus contribuciones sobre la nómina para el año natural serán $1,000 o menos y desea radicar el Formulario 944(SP) (o el Formulario 944, en inglés) en vez de los Formularios 941-PR, tiene que comunicarse con el IRS para solicitar el permiso para poder radicar el Formulario 944(SP). 2010 1040ez tax form Antes de que pueda radicar este formulario, tiene que recibir un aviso escrito de parte del IRS que le otorgue el permiso para poder radicar el Formulario 944(SP) en vez de los Formularios 941-PR. 2010 1040ez tax form Si desea más información sobre cómo solicitar el permiso para radicar el Formulario 944(SP) o el Formulario 944, en vez de los Formularios 941-PR, vea el tema titulado ¿Qué ocurre si quiere presentar Formularios 941, 941-SS o 941-PR en lugar del Formulario 944 (en inglés) o 944(SP)?, en las Instrucciones para el Formulario 944(SP). 2010 1040ez tax form Cambio de dirección. 2010 1040ez tax form . 2010 1040ez tax form  Utilice el Formulario 8822-B, Change of Address or Responsible Party-Business (Cambio de dirección— o Parte Responsable— de negocios), en inglés, para notificarle al IRS sobre un cambio a su dirección. 2010 1040ez tax form No envíe el Formulario 8822-B junto con su planilla de contribuciones sobre la nómina. 2010 1040ez tax form Los depósitos de las contribuciones federales tienen que llevarse a cabo mediante transferencia electrónica de fondos. 2010 1040ez tax form  Usted tiene que depositar toda contribución mediante transferencia electrónica de fondos. 2010 1040ez tax form Generalmente, la transferencia electrónica de fondos se lleva a cabo usando el Electronic Federal Tax Payment System (Sistema electrónico de pagos de la contribución federal o EFTPS, por sus siglas en inglés). 2010 1040ez tax form Si no desea utilizar el EFTPS, puede hacer los arreglos para que su preparador, institución financiera, servicio de nómina u otro tercero de su confianza efectúe depósitos electrónicos en nombre suyo. 2010 1040ez tax form El EFTPS es un servicio gratuito provisto por el Departamento del Tesoro. 2010 1040ez tax form Los servicios provistos por su preparador profesional, institución financiera, servicio de nómina u otro tercero podría conllevar en un cargo. 2010 1040ez tax form Si desea más información sobre cómo efectuar depósitos de la contribución federal, vea Cómo hacer los depósitos , en el apartado 11. 2010 1040ez tax form Si desea más información sobre EFTPS o si desea inscribirse, visite el sitio web de EFTPS en www. 2010 1040ez tax form eftps. 2010 1040ez tax form gov o llame al 1-800-244-4829 (1-800-733-4829, si es usuario de equipo TDD). 2010 1040ez tax form Puede encontrar información adicional sobre EFTPS en la Publicación 966 (SP), Sistema de Pago Electrónico del Impuesto Federal: La Manera Segura de pagar los Impuestos Federales. 2010 1040ez tax form Radicación y pago por medios electrónicos. 2010 1040ez tax form  El uso de las opciones electrónicas puede hacer más fácil la radicación de una planilla y el pago de la contribución federal. 2010 1040ez tax form Utilice el EFTPS para efectuar depósitos o pagar la contribución en su totalidad, independientemente de si utiliza a un preparador o si prepara sus propias planillas. 2010 1040ez tax form Puede usar el sistema electrónico e-file del IRS para radicar ciertas planillas. 2010 1040ez tax form Si hay una suma por pagar en la planilla, puede radicarla con el sistema e-file y pagar electrónicamente (e-pay) en un solo paso al autorizar un retiro electrónico de fondos de su cuenta bancaria mientras está radicando electrónicamente. 2010 1040ez tax form No utilice el retiro electrónico de fondos para pagar contribuciones que se requiere que se depositen. 2010 1040ez tax form Visite el sitio web del IRS www. 2010 1040ez tax form irs. 2010 1040ez tax form gov/efile , en inglés, para más información sobre cómo radicar una planilla electrónicamente. 2010 1040ez tax form Si desea más información sobre cómo pagar sus contribuciones utilizando el retiro electrónico de fondos, visite la página del IRS en www. 2010 1040ez tax form irs. 2010 1040ez tax form gov/e-pay. 2010 1040ez tax form Se le podría cobrar un cargo por radicar electrónicamente. 2010 1040ez tax form Para EFTPS, visite www. 2010 1040ez tax form eftps. 2010 1040ez tax form gov o llame a la línea de servicio al cliente de EFTPS al 1-800-244-4829 o 1-800-733-4829, si es usuario de equipo TDD. 2010 1040ez tax form Para la radicación electrónica de los Formularios 499R-2/W-2PR y 499R-2/W-2cPR ante la Administración del Seguro Social, visite la página web www. 2010 1040ez tax form hacienda. 2010 1040ez tax form gobierno. 2010 1040ez tax form pr. 2010 1040ez tax form Si usted está radicando su planilla de contribuciones o si está pagando sus contribuciones federales electrónicamente, se necesita que provea un EIN válido. 2010 1040ez tax form Si no provee un EIN válido, la planilla o pago no se tramitará. 2010 1040ez tax form Esto podría resultarle en multas y demoras en la tramitación de su planilla o pago. 2010 1040ez tax form Pagos con tarjeta de crédito o débito. 2010 1040ez tax form  Para mayor información sobre cómo se pagan las contribuciones con tarjetas de crédito o débito, visite el sitio web del IRS, www. 2010 1040ez tax form irs. 2010 1040ez tax form gov/e-pay. 2010 1040ez tax form No obstante, no use una tarjeta de crédito o débito para pagar contribuciones que deben ser depositadas. 2010 1040ez tax form Contratación de empleados nuevos. 2010 1040ez tax form  Mantenga un registro con el nombre y número de cada uno de sus empleados nuevos según aparece en su tarjeta de Seguro Social. 2010 1040ez tax form Todo empleado que no tenga una tarjeta de Seguro Social deberá solicitarla usando el Formulario SS-5-SP, Solicitud para una Tarjeta de Seguro Social, en español. 2010 1040ez tax form Vea el apartado 4 . 2010 1040ez tax form Cómo informar las discrepancias entre los Formularios 941-PR (o 944(SP)) y los Formularios 499R-2/W-2PR. 2010 1040ez tax form . 2010 1040ez tax form  Utilice el Anexo D (Formulario 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations (Informe de discrepancias causadas por adquisiciones, fusiones o consolidaciones), en inglés. 2010 1040ez tax form En este anexo se explicarán las discrepancias en los salarios, contribuciones y pagos que han surgido entre los Formularios 941-PR (o el Formulario 944(SP)) debido a adquisiciones, fusiones o consolidaciones. 2010 1040ez tax form Si desea más información, vea las Instrucciones para el Anexo D (Formulario 941), disponibles en inglés. 2010 1040ez tax form Solicitud de un número de identificación patronal en línea (EIN). 2010 1040ez tax form  Usted puede solicitar un número de identificación patronal (EIN, por sus siglas en inglés) en línea al visitar el sitio web IRS. 2010 1040ez tax form gov, en inglés, y pulsar sobre el enlace “Apply for an EIN Online” (Solicitud de un número de identificación patronal en línea (EIN)), que se encuentra bajo Tools (Herramientas). 2010 1040ez tax form La información está provista en inglés. 2010 1040ez tax form Pagos rechazados. 2010 1040ez tax form  Cualquier forma de pago que ha sido rechazado y es devuelto por la institución financiera está sujeto a una penalidad. 2010 1040ez tax form Esta penalidad es $25 o el 2% de la cantidad del pago, lo mayor entre ambos. 2010 1040ez tax form Sin embargo, la penalidad en pagos rechazados de $24. 2010 1040ez tax form 99 o menos es igual a la cantidad del pago. 2010 1040ez tax form Por ejemplo, un pago por $18 que fue rechazado, la penalidad es $18 (la cantidad rechazada). 2010 1040ez tax form Remuneración pagada a trabajadores agrícolas con visa H-2A. 2010 1040ez tax form  La remuneración que le paga a trabajadores agrícolas por trabajo realizado con una visa H-2A no está sujeta a las contribuciones al Seguro Social, al Medicare o la Contribución Adicional al Medicare. 2010 1040ez tax form Por lo tanto, no debe informarla como remuneración sujeta a dichas contribuciones. 2010 1040ez tax form Verifique con las agencias del gobierno de Puerto Rico para verificar si tiene algún requisito estatal. 2010 1040ez tax form Servicios de entrega privados. 2010 1040ez tax form  Puede usar ciertos servicios de entrega privados designados por el IRS para enviar sus planillas o pagos de la contribución. 2010 1040ez tax form La lista incluye sólo los servicios siguientes: DHL Express (DHL): DHL Same Day Service. 2010 1040ez tax form Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority y FedEx International First. 2010 1040ez tax form United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. 2010 1040ez tax form M. 2010 1040ez tax form , UPS Worldwide Express Plus y UPS Worldwide Express. 2010 1040ez tax form Si desea obtener la dirección a dónde enviar la planilla o pago si utilizara un servicio de entrega privado, acceda a IRS. 2010 1040ez tax form gov y escriba “private delivery service” en la casilla Search (Buscar). 2010 1040ez tax form La información está disponible en inglés. 2010 1040ez tax form El proveedor de servicio de entrega privado que escoja puede informarle de cómo se obtiene verificación por escrito de la fecha de envío. 2010 1040ez tax form Los servicios de entrega privados no pueden entregar artículos de correo a los apartados postales. 2010 1040ez tax form Usted tiene que utilizar el Servicio Postal de los EE. 2010 1040ez tax form UU. 2010 1040ez tax form para enviar todo artículo de correo a una dirección que incluya un apartado postal del IRS. 2010 1040ez tax form Mantenimiento de récords. 2010 1040ez tax form  Conserve todos los récords de sus contribuciones sobre la nómina durante 4 años. 2010 1040ez tax form Los mismos deben estar disponibles para ser inspeccionados por funcionarios del IRS. 2010 1040ez tax form No se ha establecido ninguna manera especial de llevar estos récords. 2010 1040ez tax form Sin embargo, los mismos deberán incluir su EIN, las cantidades y fechas de todos los pagos de salarios (incluyendo beneficios marginales) y las propinas declaradas, así como los nombres, direcciones y ocupaciones de todos los empleados que reciban tales pagos, las fechas de empleo, además de los números de Seguro Social y los duplicados de las planillas de contribución radicadas anteriormente, incluyendo las fechas y cantidades de depósitos hechos según se explica en el apartado 11 . 2010 1040ez tax form Todo patrono agrícola tiene que llevar un registro en el cual consten el nombre, dirección permanente y el EIN de cada líder de cuadrilla. 2010 1040ez tax form Vea Líder de cuadrilla, en el apartado 1 . 2010 1040ez tax form Comentarios y sugerencias. 2010 1040ez tax form  Le agradecemos sus comentarios sobre esta publicación y sugerencias para ediciones futuras de la misma. 2010 1040ez tax form Puede escribirnos a la siguiente dirección: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 2010 1040ez tax form NW, IR-6526 Washington, DC 20224 Nosotros contestamos muchas cartas a través de llamadas telefónicas. 2010 1040ez tax form Por lo tanto, sería de ayuda si en su correspondencia incluye su número telefónico, junto con el código de área telefónico, en donde nos podamos comunicar con usted durante el día. 2010 1040ez tax form También, puede enviarnos comentarios a través de la página www. 2010 1040ez tax form irs. 2010 1040ez tax form gov/formspubs. 2010 1040ez tax form Pulse sobre el enlace titulado More Information (Más información) y luego pulse sobre el enlace titulado “Give us Feedback” (Proveer comentarios), en inglés. 2010 1040ez tax form Aunque no podemos contestar a cada comentario que recibimos, sí agradecemos sus sugerencias y las consideraremos al revisar nuestros productos contributivos. 2010 1040ez tax form Fotografías de niños desaparecidos. 2010 1040ez tax form  El Servicio de Rentas Internas siente orgullo en colaborar con el National Center for Missing and Exploited Children (Centro Nacional de Niños Desaparecidos y Explotados). 2010 1040ez tax form Las fotografías de niños desaparecidos que han sido seleccionadas por el Centro pueden aparecer en esta publicación en páginas que de otra manera estarían en blanco. 2010 1040ez tax form Usted puede ayudar a que estos niños regresen a sus hogares si al mirar sus fotografías los puede identificar y entonces llama libre de cargos al 1-800-THE-LOST (1-800-843-5678). 2010 1040ez tax form Calendario   Si alguna fecha indicada a continuación es un sábado, domingo o día festivo oficial, la fecha de vencimiento para radicar la planilla, presentar un formulario o depositar su contribución es el próximo día laborable. 2010 1040ez tax form Un día festivo oficial en Puerto Rico o en un estado posterga una fecha de vencimiento únicamente si la oficina del IRS donde usted tiene que radicar su planilla de contribución está localizada en tal estado o territorio. 2010 1040ez tax form Para propósitos de la fecha de vencimiento, se cumplen los requisitos para radicar la planilla si la misma se encuentra en un sobre que esté dirigido apropiadamente, que tenga suficiente franqueo y que el matasellos esté fechado a más tardar en la fecha de vencimiento. 2010 1040ez tax form Si se envía mediante un servicio de entrega privado aprobado por el IRS, la misma se tiene que enviar a más tardar en la fecha de vencimiento. 2010 1040ez tax form Vea el tema Servicios de entrega privados en Recordatorios. 2010 1040ez tax form A continuación encontrará una lista de las fechas y responsabilidades más importantes para usted. 2010 1040ez tax form Además, vea la Publicación 509, Tax Calendars (Calendarios contributivos), en inglés, para más información. 2010 1040ez tax form Para el 31 de enero:  Entregue a los empleados sus comprobantes de retención. 2010 1040ez tax form Entréguele a cada empleado un Formulario 499R-2/W-2PR, Comprobante de Retención, debidamente completado. 2010 1040ez tax form Vea el apartado 13 . 2010 1040ez tax form Radique el Formulario 943-PR, Planilla para la Declaración ANUAL de la Contribución Federal del Patrono de Empleados Agrícolas, ante el IRS. 2010 1040ez tax form Si depositó a tiempo la contribución correspondiente al Formulario 943-PR en su totalidad, tendrá hasta 10 días naturales adicionales a partir de la fecha de vencimiento indicada anteriormente para radicar su Formulario 943-PR. 2010 1040ez tax form Radique el Formulario 940-PR, Planilla para la Declaración Federal ANUAL del Patrono de la Contribución Federal para el Desempleo (FUTA), ante el IRS. 2010 1040ez tax form Pague o deposite todo saldo adeudado (si es más de $500). 2010 1040ez tax form Si depositó el total de las contribuciones adeudadas a su debido tiempo, tendrá hasta 10 días naturales adicionales a partir de la fecha de vencimiento indicada anteriormente para radicar el Formulario 940-PR. 2010 1040ez tax form Si antes radicaba el Formulario 944-PR, radique ahora el Formulario 944(SP), Declaración Federal ANUAL de Impuestos del Patrono o Empleador (o el Formulario 944, en inglés), ante el IRS si el mismo le notificó que debe radicar el Formulario 944(SP) en lugar de los Formularios 941-PR trimestrales. 2010 1040ez tax form Si depositó la cantidad total de contribuciones conforme a la fecha de vencimiento de éstas, tendrá 10 días naturales adicionales a partir de la fecha de vencimiento indicada anteriormente para radicar el Formulario 944(SP). 2010 1040ez tax form Para el 28 de febrero. 2010 1040ez tax form   Radique los comprobantes de retención ante la Administración del Seguro Social (SSA, por sus siglas en inglés). 2010 1040ez tax form Radique el Original del Formulario 499R-2/W-2PR, junto con el Formulario W-3PR, Informe de Comprobantes de Retención, ante la SSA. 2010 1040ez tax form Para las planillas radicadas por vías electrónicas, vea el siguiente tema. 2010 1040ez tax form Para el 31 de marzo. 2010 1040ez tax form  Radique el Formulario 499R-2/W-2PR por vías electrónicas (y no por medios magnéticos o en papel) ante la SSA. 2010 1040ez tax form Sin embargo, puede transmitir un archivo electrónico por medio de Internet. 2010 1040ez tax form Vea Employer W-2 Filing Instructions & Information (Instrucciones e información para patronos sobre la radicación de Formularios W-2), en inglés, en el sitio web www. 2010 1040ez tax form socialsecurity. 2010 1040ez tax form gov/employer de la SSA para más información. 2010 1040ez tax form Para el 30 de abril, 31 de julio, 31 de octubre y 31 de enero. 2010 1040ez tax form  Radique el Formulario 941-PR trimestralmente ante el IRS. 2010 1040ez tax form Si depositó el total de las contribuciones adeudadas a su debido tiempo, tendrá hasta 10 días naturales adicionales a partir de las fechas de vencimiento indicadas anteriormente para radicar el Formulario 941-PR. 2010 1040ez tax form No radique los Formularios 941-PR para dichos trimestres si el IRS le ha informado que debe radicar el Formulario 944(SP). 2010 1040ez tax form Deposite la contribución FUTA para el trimestre (incluyendo toda cantidad trasladada de un trimestre anterior) si la cantidad adeudada es más de $500. 2010 1040ez tax form Si es de $500 o menos, traspásela al trimestre siguiente. 2010 1040ez tax form Vea el apartado 10 , para más información. 2010 1040ez tax form Introduction Esta publicación deberá ser usada por patronos cuyo negocio principal está ubicado en Puerto Rico o que tienen empleados cuyos ingresos están sujetos a retención de la contribución estatal sobre los ingresos de Puerto Rico. 2010 1040ez tax form Generalmente, tanto los patronos como los empleados en Puerto Rico están sujetos a las contribuciones al Seguro Social y al seguro Medicare, conforme a la Federal Insurance Contributions Act (Ley de Contribuciones Federales al Seguro Social o FICA, por sus siglas en inglés). 2010 1040ez tax form Esta publicación resume las responsabilidades que tiene el patrono en cuanto al cobro, pago y declaración de dichas contribuciones. 2010 1040ez tax form Dondequiera que en esta publicación se use el término “Estados Unidos”, el mismo incluye a Puerto Rico, las Islas Vírgenes y los territorios autónomos y territorios no autónomos de los Estados Unidos. 2010 1040ez tax form Las secciones a las cuales se hace referencia en esta publicación corresponden al Código Federal de Rentas Internas, a menos que se indique lo contrario. 2010 1040ez tax form Esta publicación también proporciona a dichos patronos un resumen de sus responsabilidades en relación con las contribuciones bajo la Federal Unemployment Tax Act (Ley Federal de Contribución para el Desempleo o FUTA, por sus siglas en inglés). 2010 1040ez tax form Vea los apartados 9 y 10 . 2010 1040ez tax form Excepto por lo indicado en las tablas que se hallan en el apartado 15 , esas contribuciones corresponden a todo patrono que pague salarios tributables a empleados o que tenga empleados que declaran propinas. 2010 1040ez tax form En esta publicación no se incluye información relacionada con las contribuciones del trabajo por cuenta propia (Seguro Social y Medicare para personas que trabajan por cuenta propia). 2010 1040ez tax form Si necesita información sobre estas contribuciones, comuníquese con la oficina del IRS en Guaynabo o vea la Publicación 570, Tax Guide for Individuals With Income From U. 2010 1040ez tax form S. 2010 1040ez tax form Possessions (Guía tributaria para individuos con ingresos de fuentes en los territorios estadounidenses), en inglés. 2010 1040ez tax form Contribuciones sobre los ingresos de Puerto Rico. 2010 1040ez tax form   Esta publicación no incluye información relacionada con la retención de contribuciones federales sobre los ingresos. 2010 1040ez tax form Ésta sólo trata las contribuciones sobre la nómina para patronos que están en Puerto Rico. 2010 1040ez tax form   Si desea obtener información acerca de la contribución sobre ingresos de Puerto Rico, consulte con el Departamento de Hacienda de Puerto Rico. 2010 1040ez tax form Las personas que trabajan amparadas bajo el programa del Seguro Social elijen un plan de protección para sus familias y para sí mismas. 2010 1040ez tax form Entidades no consideradas como separadas de sus dueños y compañías subsidarias calificadas conforme al subcapítulo S (QSubs). 2010 1040ez tax form   Las entidades no consideradas como separadas de sus dueños (disregarded entities) que tienen un solo dueño y que cumplen los requisitos y las compañías subsidiarias calificadas conforme al subcapítulo S (QSubs, por sus siglas en inglés), son tratadas como si fueran entidades separadas de su dueño para propósitos de las contribuciones sobre la nómina. 2010 1040ez tax form Las entidades no consideradas como separadas de sus dueños que tienen un solo dueño y que cumplen los requisitos y no han optado por ser tratadas como corporación, tiene que declarar y pagar la contribución sobre la nómina correspondiente a los salarios de los empleados utilizando el nombre y EIN de dicha entidad. 2010 1040ez tax form Vea la sección 1. 2010 1040ez tax form 1361-4(a)(7) y la sección 301. 2010 1040ez tax form 7701-2(c)(2)(iv) de los Reglamentos, en inglés. 2010 1040ez tax form Crédito de asistencia para las primas de COBRA. 2010 1040ez tax form   La Consolidated Omnibus Budget Reconciliation Act of 1985 (Ley de Conciliación de Asignaciones del Presupuesto de 1985 o COBRA, por sus siglas en inglés) les provee a ciertos ex empleados, jubilados, cónyuges, ex cónyuges e hijos dependientes el derecho a recibir temporalmente cobertura de salud a tarifas especiales para grupos. 2010 1040ez tax form La ley COBRA, por lo general, cubre los planes de salud que incluyen a múltiples patronos y planes de salud que son mantenidos por patronos de la empresa privada (que no son iglesias) que tengan 20 o más empleados a tiempo completo o parcial. 2010 1040ez tax form A dichos planes les corresponden ciertos requisitos conforme a la Employee Retirement Income Security Act of 1974 (Ley para la Protección de los Ingresos de Jubilación para los Empleados de 1974 o ERISA, por sus siglas en inglés). 2010 1040ez tax form Conforme a la Public Health Service Act (Ley sobre el Servicio de Salud Pública), los requisitos del programa COBRA también le corresponden a los planes de salud que cubren a los empleados gubernamentales estatales y municipales. 2010 1040ez tax form Requisitos similares corresponden conforme al Federal Employees Health Benefits Program (Programa de Seguro Médico para los Empleados Federales (FEHBP, por sus siglas en inglés)) y ciertas leyes estatales. 2010 1040ez tax form Para tratar a la asistencia (o subsidio) para las primas de COBRA que se explican a continuación, a todos estos requisitos se les refiere como “requisitos de COBRA ”. 2010 1040ez tax form   La ley American Recovery and Reinvestment Act of 2009 (Ley de Recuperación y Reinversión Económica Estadounidense de 2009 o ARRA, por sus siglas en inglés) permite un crédito contra las contribuciones sobre la paga (dichas contribuciones se denominan “contribuciones sobre la nómina” en esta publicación), para proveer asistencia para las primas de COBRA a individuos que cumplen con los requisitos para recibir dicha asistencia. 2010 1040ez tax form Para los períodos de continuidad de cobertura COBRA que comienzan después del 16 de febrero de 2009, un plan de salud colectivo tiene que tratar a un individuo que reúne los requisitos para la asistencia como si hubiese pagado la prima de COBRA para la continuidad de cobertura requerida si el individuo optó por la cobertura COBRA y paga el 35% de la cantidad de la prima. 2010 1040ez tax form   Un individuo que reúne los requisitos para la asistencia es un beneficiario calificado que cumple con los requisitos para la continuidad de la cobertura COBRA durante el período que comienza el 1 de septiembre de 2008, y que termina el 31 de mayo de 2010, debido al cese involuntario de empleo de un empleado amparado por la cobertura durante el período y que opta por la continuidad de la cobertura de COBRA. 2010 1040ez tax form La asistencia para mantener la cobertura puede durar hasta 15 meses. 2010 1040ez tax form   Los empleados que fueron despedidos durante el período que comienza el 1 septiembre de 2008 y que termina el 31 de mayo de 2010, y recibieron ofertas de indemnización que retrasaron el inicio de la continuación de cobertura COBRA, pueden ser elegibles para recibir asistencia con las primas para la continuación de cobertura COBRA. 2010 1040ez tax form Para más información, vea Notice 2009-27 (Avisio 2009-27) que aparece en la página 838 del Internal Revenue Bulletin (Boletín de Rentas Internas 2009-16), en inglés, disponible en www. 2010 1040ez tax form irs. 2010 1040ez tax form gov/irb/2009-16_irb/ar09. 2010 1040ez tax form html. 2010 1040ez tax form   Los administradores de planes de salud colectivos (u otras entidades) que proveen o administran la continuación de la cobertura COBRA, tienen que notificarle a los individuos que cumplen con los requisitos para la asistencia de las primas de COBRA de que tienen derecho a dicha cobertura. 2010 1040ez tax form   El 65% de la prima que no es pagada por las personas que reúnen los requisitos para la asistencia se le reembolsa a los patronos que mantienen el plan de salud colectivo. 2010 1040ez tax form El reembolso se hace por medio de un crédito que se le aplica a las obligaciones de las contribuciones sobre la nómina del patrono. 2010 1040ez tax form Para obtener información sobre cómo reclamar el crédito, vea las Instrucciones para el Formulario 941-PR o las Instrucciones para el Formulario 944(SP). 2010 1040ez tax form El crédito se le trata como un depósito hecho en el primer día del período de la planilla (trimestre o año). 2010 1040ez tax form En el caso de un plan que cubre a múltiples patronos, el crédito es reclamado por el plan, en vez del patrono. 2010 1040ez tax form En el caso de un plan asegurado que está sujeto a los requisitos estatales para la continuidad de cobertura, el crédito es reclamado por la compañía de seguros, en vez del patrono. 2010 1040ez tax form   Todo individuo o entidad que reclama el crédito por los pagos para la asistencia COBRA tiene que conservar la siguiente información para comprobar su reclamación: Información sobre el recibo, incluyendo fechas y cantidades, de la parte del 35% de la prima que le corresponde a la persona que reúne los requisitos para la asistencia. 2010 1040ez tax form En el caso de un plan de seguro, una copia de la factura u otro documento comprobante emitido por la compañía aseguradora y prueba del pago a tiempo de la prima completa hecho a la compañía aseguradora que se requiere conforme los requisitos para la cobertura COBRA. 2010 1040ez tax form En el caso de un plan autoasegurado, documentos que comprueban la cantidad de la prima y la cobertura provista a las personas que reúnen los requisitos para la asistencia. 2010 1040ez tax form Atestiguación del cese involuntario, incluyendo la fecha de cesación (despido) involuntario para cada empleado amparado por la cobertura cuyo despido involuntario es la base para el derecho al subsidio. 2010 1040ez tax form Prueba de que cada persona reúne los requisitos para la asistencia de la cobertura COBRA y de que ha optado por dicha cobertura. 2010 1040ez tax form Un registro que tenga los números de Seguro Social de todos los empleados con cobertura, la cantidad del subsidio reembolsado con respecto a cada empleado con cobertura y que indique si el subsidio se debe a una persona o a dos o más personas. 2010 1040ez tax form   Para más información, visite IRS. 2010 1040ez tax form gov y escriba “COBRA” en la casilla Search (Buscar). 2010 1040ez tax form La información está disponible en inglés. 2010 1040ez tax form Ayuda para radicar documentos ante la SSA. 2010 1040ez tax form   Si necesita ayuda en español para radicar sus formularios contributivos ante la SSA (esto incluye la solicitud de un número de identificación personal (PIN, por sus siglas en inglés)), llame a la SSA al 1-800-772-6270. 2010 1040ez tax form Elegibilidad para empleo. 2010 1040ez tax form   Usted tiene que verificar que cada empleado nuevo tenga derecho a trabajar legalmente en los Estados Unidos. 2010 1040ez tax form Esto incluye completar el Formulario I-9, Employment Eligibility Verification (Verificación de elegibilidad para empleo), disponible en español, del Servicio de Ciudadanía e Inmigración de Estados Unidos (USCIS, por sus siglas en inglés). 2010 1040ez tax form Puede obtener el formulario llamando al USCIS al 1-800-870-3676. 2010 1040ez tax form Si desea más información, comuníquese con el USCIS al 1-800-375-5283 o visite la página web de USCIS en www. 2010 1040ez tax form uscis. 2010 1040ez tax form gov/espanol. 2010 1040ez tax form Prev  Up  Next   Home   More Online Publications
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Contact My Local Office in Montana

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

 City Street Address  Days/Hours of Service  Telephone* 
Billings  2900 4th Ave. N.
Billings, MT 59101 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(406) 247-7446 
Bozeman  1805 S. 22nd Ave.
Bozeman, MT 59718 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 11:30 a.m. - 12:30 p.m.)

 

Services Provided

(406) 582-8671 
Great Falls  11 5th St. N.
Great Falls, MT 59401 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 11:30 a.m. - 12:30 p.m.)

 

Services Provided

(406) 761-8095 
Helena  10 W. 15th St., Ste. 2300
Helena, MT 59626 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 11:30 a.m. - 12:30 p.m.)

 

Services Provided

(406) 441-1039 
Kalispell  275 Corporate Ave.
Kalispell, MT 59901 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 11:00 a.m. - 12:00 noon)

 

Services Provided

(406) 752-6636 
Missoula  2681 Palmer St.
Missoula, MT 59808 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
 

Services Provided

(406) 728-9127 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses). 

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call 406-444-8668 in the Helena area or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS.

For further information, see Tax Topic 104

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
10 W. 15th, STE 2300
 MS 6610-HLN
Helena, MT 59626

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The 2010 1040ez Tax Form

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