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Can You E File An Amended Return

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Can You E File An Amended Return

Can you e file an amended return 10. Can you e file an amended return   Indoor Tanning Services Tax Table of Contents The tax on indoor tanning service is 10% of the amount paid for that service. Can you e file an amended return The tax is paid by the person paying for the services and is collected by the person receiving payment for the indoor tanning services. Can you e file an amended return Definition of indoor tanning services. Can you e file an amended return   Indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps and intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning. Can you e file an amended return The term does not include phototherapy service performed by, and on the premises of, a licensed medical professional (such as a dermatologist, psychologist, or registered nurse). Can you e file an amended return See regulations section 49. Can you e file an amended return 5000B-1 for more information, and special rules for qualified physical fitness facilities, undesignated payment cards, and bundled payments. Can you e file an amended return File Form 720. Can you e file an amended return   The person receiving the payment for indoor tanning services (collector) must collect and remit the tax and file the return. Can you e file an amended return If the tax is not collected for any reason, the collector is liable for the tax. Can you e file an amended return The collector is not required to make semimonthly deposits of the tax. Can you e file an amended return Prev  Up  Next   Home   More Online Publications
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Contact My Local Office in Louisiana

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*
Alexandria

3508 Government Street
Alexandria, LA. 71302

Monday -Friday - 8:30 a.m.-4:30 p.m. 
(Closed for lunch 12:00 noon- 1:00 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(318) 445-8028 

Alexandria/remote
Taxpayer Assistance
available at New Horizon
3717 Government Street
Alexandria, LA 71302

Monday-Friday - 8:30 a.m.-3:30 p.m.

 

Virtual Services Provided

(318) 445-8028
Baton Rouge 

2600 Citiplace Centre
Baton Rouge, LA. 70808 

Monday-Friday - 8:30 a.m.-4:30 p.m. 

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**
 

Services Provided

(225) 343-8625 

Houma 

423 Lafayette St.
Houma, LA 70360 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(985) 876-0949 

Lafayette  4021-A Ambassador
Caffery Parkway
Lafayette, LA 70503 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.) 

 

Services Provided

(337) 269-4036 

Lake Charles 

One Lake Shore Drive
Lake Charles, LA 70629
 
 

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

 

Services Provided

(337) 433-1362 

Monroe 

1401 Hudson Ln.
Monroe, LA 71201 

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

 

Services Provided

(318) 322-6785

New Orleans 

1555 Poydras Street
New Orleans, LA 70112 

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

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(504) 558-3344 

Shreveport 

3007 Knight St.
Shreveport, LA 71105 

Monday-Friday - 8:30 a.m.-4:30 p.m.
 

Services Provided

(318) 869-6310 

* 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 (504)558- 3001 in New Orleans or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the 0399 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
1555 Poydras St., 
Attn: SPEC, Suite 220, Stop 5
New Orleans, LA 70112-3747

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 Can You E File An Amended Return

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