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Free Tax Filing 2012 State And Federal

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Free Tax Filing 2012 State And Federal

Free tax filing 2012 state and federal Publication 571 - Introductory Material Table of Contents Future Developments What's New for 2013 What's New for 2014 Reminder IntroductionOrdering forms and publications. Free tax filing 2012 state and federal Tax questions. Free tax filing 2012 state and federal Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 571 and its instructions, such as legislation enacted after they were published, go to www. Free tax filing 2012 state and federal irs. Free tax filing 2012 state and federal gov/pub571. Free tax filing 2012 state and federal What's New for 2013 Retirement savings contributions credit. Free tax filing 2012 state and federal  For 2013, the adjusted gross income limitations have increased from $57,500 to $59,000 for married filing jointly filers, from $43,125 to $44,250 for head of household filers, and from $28,750 to $29,500 for single, married filing separately, or qualifying widow(er) with dependent child filers. Free tax filing 2012 state and federal See chapter 10, Retirement Savings Contributions Credit (Saver's Credit), for additional information. Free tax filing 2012 state and federal Limit on elective deferrals. Free tax filing 2012 state and federal  For 2013, the limit on elective deferrals has increased from $17,000 to $17,500. Free tax filing 2012 state and federal Limit on annual additions. Free tax filing 2012 state and federal  For 2013, the limit on annual additions has increased from $50,000 to $51,000. Free tax filing 2012 state and federal What's New for 2014 Retirement savings contributions credit. Free tax filing 2012 state and federal  For 2014, the adjusted gross income limitations have increased from $59,000 to $60,000 for married filing jointly filers, from $44,250 to $45,000 for head of household filers, and from $29,500 to $30,000 for single, married filing separately, or qualifying widow(er) with dependent child filers. Free tax filing 2012 state and federal See chapter 10, Retirement Savings Contributions Credit (Saver's Credit), for additional information. Free tax filing 2012 state and federal Limit on elective deferrals. Free tax filing 2012 state and federal  For 2014, the limit on elective deferrals remains unchanged at $17,500. Free tax filing 2012 state and federal Limit on annual additions. Free tax filing 2012 state and federal  For 2014, the limit on annual additions has increased from $51,000 to $52,000. Free tax filing 2012 state and federal Reminder Photographs of missing children. Free tax filing 2012 state and federal  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Free tax filing 2012 state and federal Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Free tax filing 2012 state and federal You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Free tax filing 2012 state and federal Introduction This publication can help you better understand the tax rules that apply to your 403(b) (tax-sheltered annuity) plan. Free tax filing 2012 state and federal In this publication, you will find information to help you: Determine the maximum amount that can be contributed to your 403(b) account in 2014. Free tax filing 2012 state and federal Determine the maximum amount that could have been contributed to your 403(b) account in 2013. Free tax filing 2012 state and federal Identify excess contributions. Free tax filing 2012 state and federal Understand the basic rules for claiming the retirement savings contributions credit. Free tax filing 2012 state and federal Understand the basic rules for distributions and rollovers from 403(b) accounts. Free tax filing 2012 state and federal This publication does not provide specific information on the following topics. Free tax filing 2012 state and federal Distributions from 403(b) accounts. Free tax filing 2012 state and federal This is covered in Publication 575, Pension and Annuity Income. Free tax filing 2012 state and federal Rollovers. Free tax filing 2012 state and federal This is covered in Publication 590, Individual Retirement Arrangements (IRAs). Free tax filing 2012 state and federal How to use this publication. Free tax filing 2012 state and federal   This publication is organized into chapters to help you find information easily. Free tax filing 2012 state and federal    Chapter 1 answers questions frequently asked by 403(b) plan participants. Free tax filing 2012 state and federal    Chapters 2 through 6 explain the rules and terms you need to know to figure the maximum amount that could have been contributed to your 403(b) account for 2013 and the maximum amount that can be contributed to your 403(b) account in 2014. Free tax filing 2012 state and federal    Chapter 7 provides general information on the prevention and correction of excess contributions to your 403(b) account. Free tax filing 2012 state and federal    Chapter 8 provides general information on distributions, transfers, and rollovers. Free tax filing 2012 state and federal    Chapter 9 provides blank worksheets that you will need to accurately and actively participate in your 403(b) plan. Free tax filing 2012 state and federal Filled-in samples of most of these worksheets can be found throughout this publication. Free tax filing 2012 state and federal    Chapter 10 explains the rules for claiming the retirement savings contributions credit (saver's credit). Free tax filing 2012 state and federal Comments and suggestions. Free tax filing 2012 state and federal   We welcome your comments about this publication and your suggestions for future editions. Free tax filing 2012 state and federal   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Free tax filing 2012 state and federal NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free tax filing 2012 state and federal Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free tax filing 2012 state and federal   You can send your comments from www. Free tax filing 2012 state and federal irs. Free tax filing 2012 state and federal gov/formspubs/. Free tax filing 2012 state and federal Click on “More Information” and then on “Comment on Tax Forms and Publications. Free tax filing 2012 state and federal ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Free tax filing 2012 state and federal Ordering forms and publications. Free tax filing 2012 state and federal   Visit www. Free tax filing 2012 state and federal irs. Free tax filing 2012 state and federal gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Free tax filing 2012 state and federal  Internal Revenue Service 1201 N. Free tax filing 2012 state and federal Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Free tax filing 2012 state and federal   If you have a tax question, check the information available on IRS. Free tax filing 2012 state and federal gov or call 1-800-829-1040. Free tax filing 2012 state and federal We cannot answer tax questions sent to either of the above addresses. Free tax filing 2012 state and federal Useful Items - You may want to see: Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) W-2 Wage and Tax Statement 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free tax filing 2012 state and federal 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 5330 Return of Excise Taxes Related to Employee Benefit Plans Prev  Up  Next   Home   More Online Publications
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SOI Tax Stats - Split-Interest Trust Statistics

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Split Interest Trust Data OneSheet (PDF) 
The OneSheet presents a project description, highlights of the data, and selected figures.

Split-interest trusts make distributions to both charitable and noncharitable beneficiaries, while providing tax benefits to their donor. All split-interest trusts must annually file Form 5227, Split-Interest Trust Information Return, to report financial activity and determine if they should be treated as a private foundation. Based on the method and timing of distributions, split-interest trusts are divided into the following four categories:

  • Charitable remainder annuity trusts—distribute income in a series of fixed payments to one or more noncharitable beneficiaries for a defined period of time, after which the remaining value of the trust is transferred to a charitable beneficiary.
  • Charitable remainder unitrusts—distribute a percentage of the fair market value to one or more noncharitable beneficiaries for a defined period of time, after which remaining value of the trust is transferred to a charitable beneficiary.
  • Charitable lead trusts—distribute a sequence of payments to a charitable beneficiary for a period of time, after which the remaining trust assets are transferred to a noncharitable beneficiary.
  • Pooled income funds—allow donors to donate assets to a charity. The pooled assets are invested as a group and each donor receives income based on the ratio of his or her contribution to the total value of the investment pool. After the death of the donor, his or her prorated share of the investment pool is withdrawn and given to the charitable organization.

For information about selected terms and concepts, a description of the data sources and limitations, and links to recent revisions of Form 5227, please visit Split Interest Trust Study Metadata.


Statistical Tables

The following tables are available as Microsoft Excel® files. A free Excel viewer is available for download, if needed.

Charitable Remainder Annuity Trusts:

Charitable Remainder Unitrusts:

Charitable Lead Trusts:

Pooled Income Funds:


Projections
For selected tax returns, including the Form 5227, IRS's Office of Research produces annual forecasts of the number of returns that will be filed in future years.     
      Projections of Returns to be Filed in Future Calendar Years


Publications and Papers

The following are available as PDF files.  A free Adobe® reader is available for download, if needed.


Other SOI Data on Trusts

Certain nonexempt charitable trusts are also annually required to file Form 990-PF, Return of Private Foundation (or Section 4947(a)(1) Charitable Trust Treated as a Private Foundation).  Form 1041 is the income tax return filed by to report income, distributions, and tax liability of estates and trusts.


Other IRS Data and Related Links

For tax administration data on this topic, as well as other types of taxes, choose from the links below.

Return to Tax Stats home page

Page Last Reviewed or Updated: 27-Mar-2014

The Free Tax Filing 2012 State And Federal

Free tax filing 2012 state and federal 25. Free tax filing 2012 state and federal   Nonbusiness Casualty and Theft Losses Table of Contents What's New Introduction Useful Items - You may want to see: CasualtyFamily pet. Free tax filing 2012 state and federal Progressive deterioration. Free tax filing 2012 state and federal Damage from corrosive drywall. Free tax filing 2012 state and federal Theft Loss on Deposits Proof of Loss Figuring a LossDecrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Single Casualty on Multiple Properties Deduction Limits$100 Rule 10% Rule When To Report Gains and LossesDisaster Area Loss How To Report Gains and Losses What's New New Section C of Form 4684 for Ponzi-type investment schemes. Free tax filing 2012 state and federal  Section C of Form 4684 is new for 2013. Free tax filing 2012 state and federal You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. Free tax filing 2012 state and federal Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Free tax filing 2012 state and federal You do not need to complete Appendix A. Free tax filing 2012 state and federal For details, see Losses from Ponzi-type investment schemes , in this chapter. Free tax filing 2012 state and federal Introduction This chapter explains the tax treatment of personal (not business or investment related) casualty losses, theft losses, and losses on deposits. Free tax filing 2012 state and federal The chapter also explains the following  topics. Free tax filing 2012 state and federal How to figure the amount of your loss. Free tax filing 2012 state and federal How to treat insurance and other reimbursements you receive. Free tax filing 2012 state and federal The deduction limits. Free tax filing 2012 state and federal When and how to report a casualty or theft. Free tax filing 2012 state and federal Forms to file. Free tax filing 2012 state and federal    When you have a casualty or theft, you have to file Form 4684. Free tax filing 2012 state and federal You will also have to file one or more of the following forms. Free tax filing 2012 state and federal Schedule A (Form 1040), Itemized Deductions Schedule D (Form 1040), Capital Gains and Losses Condemnations. Free tax filing 2012 state and federal   For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Disposition of Assets. Free tax filing 2012 state and federal Workbook for casualties and thefts. Free tax filing 2012 state and federal    Publication 584 is available to help you make a list of your stolen or damaged personal-use property and figure your loss. Free tax filing 2012 state and federal It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. Free tax filing 2012 state and federal Business or investment-related losses. Free tax filing 2012 state and federal   For information on a casualty or theft loss of business or income-producing property, see Publication 547, Casualties, Disasters, and Thefts. Free tax filing 2012 state and federal Useful Items - You may want to see: Publication 544 Sales and Other Dispositions  of Assets 547 Casualties, Disasters, and   Thefts 584 Casualty, Disaster, and Theft   Loss Workbook (Personal-Use  Property) Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule D (Form 1040) Capital Gains and Losses 4684 Casualties and Thefts Casualty A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. Free tax filing 2012 state and federal A sudden event is one that is swift, not gradual or progressive. Free tax filing 2012 state and federal An unexpected event is one that is ordinarily unanticipated and unintended. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Deductible losses. Free tax filing 2012 state and federal   Deductible casualty losses can result from a number of different causes, including the following. Free tax filing 2012 state and federal Car accidents (but see Nondeductible losses , next, for exceptions). Free tax filing 2012 state and federal Earthquakes. Free tax filing 2012 state and federal Fires (but see Nondeductible losses , next, for exceptions). Free tax filing 2012 state and federal Floods. Free tax filing 2012 state and federal Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses in Publication 547. Free tax filing 2012 state and federal Mine cave-ins. Free tax filing 2012 state and federal Shipwrecks. Free tax filing 2012 state and federal Sonic booms. Free tax filing 2012 state and federal Storms, including hurricanes and tornadoes. Free tax filing 2012 state and federal Terrorist attacks. Free tax filing 2012 state and federal Vandalism. Free tax filing 2012 state and federal Volcanic eruptions. Free tax filing 2012 state and federal Nondeductible losses. Free tax filing 2012 state and federal   A casualty loss is not deductible if the damage or destruction is caused by the following. Free tax filing 2012 state and federal Accidentally breaking articles such as glassware or china under normal conditions. Free tax filing 2012 state and federal A family pet (explained below). Free tax filing 2012 state and federal A fire if you willfully set it or pay someone else to set it. Free tax filing 2012 state and federal A car accident if your willful negligence or willful act caused it. Free tax filing 2012 state and federal The same is true if the willful act or willful negligence of someone acting for you caused the accident. Free tax filing 2012 state and federal Progressive deterioration (explained later). Free tax filing 2012 state and federal Family pet. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal Your antique oriental rug was damaged by your new puppy before it was housebroken. Free tax filing 2012 state and federal Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss. Free tax filing 2012 state and federal Progressive deterioration. Free tax filing 2012 state and federal    Loss of property due to progressive deterioration is not deductible as a casualty loss. Free tax filing 2012 state and federal This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. Free tax filing 2012 state and federal The following are examples of damage due to progressive deterioration. Free tax filing 2012 state and federal The steady weakening of a building due to normal wind and weather conditions. Free tax filing 2012 state and federal The deterioration and damage to a water heater that bursts. Free tax filing 2012 state and federal However, the rust and water damage to rugs and drapes caused by the bursting of a water heater does qualify as a casualty. Free tax filing 2012 state and federal Most losses of property caused by droughts. Free tax filing 2012 state and federal To be deductible, a drought-related loss generally must be incurred in a trade or business or in a transaction entered into for profit. Free tax filing 2012 state and federal Termite or moth damage. Free tax filing 2012 state and federal The damage or destruction of trees, shrubs, or other plants by a fungus, disease, insects, worms, or similar pests. Free tax filing 2012 state and federal However, a sudden destruction due to an unexpected or unusual infestation of beetles or other insects may result in a casualty loss. Free tax filing 2012 state and federal Damage from corrosive drywall. Free tax filing 2012 state and federal   Under a special procedure, you may be able to claim a casualty loss deduction for amounts you paid to repair damage to your home and household appliances that resulted from corrosive drywall. Free tax filing 2012 state and federal For details, see Publication 547. Free tax filing 2012 state and federal Theft A theft is the taking and removing of money or property with the intent to deprive the owner of it. Free tax filing 2012 state and federal The taking of property must be illegal under the laws of the state where it occurred and it must have been done with criminal intent. Free tax filing 2012 state and federal You do not need to show a conviction for theft. Free tax filing 2012 state and federal Theft includes the taking of money or property by the following means. Free tax filing 2012 state and federal Blackmail. Free tax filing 2012 state and federal Burglary. Free tax filing 2012 state and federal Embezzlement. Free tax filing 2012 state and federal Extortion. Free tax filing 2012 state and federal Kidnapping for ransom. Free tax filing 2012 state and federal Larceny. Free tax filing 2012 state and federal Robbery. Free tax filing 2012 state and federal The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. Free tax filing 2012 state and federal Decline in market value of stock. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal You report a capital loss on Schedule D (Form 1040). Free tax filing 2012 state and federal For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. Free tax filing 2012 state and federal Mislaid or lost property. Free tax filing 2012 state and federal   The simple disappearance of money or property is not a theft. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Sudden, unexpected, and unusual events are defined earlier. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Free tax filing 2012 state and federal The diamond falls from the ring and is never found. Free tax filing 2012 state and federal The loss of the diamond is a casualty. Free tax filing 2012 state and federal Losses from Ponzi-type investment schemes. Free tax filing 2012 state and federal   If you had a loss from a Ponzi-type investment scheme, see: Revenue Ruling 2009-9, 2009-14 I. Free tax filing 2012 state and federal R. Free tax filing 2012 state and federal B. Free tax filing 2012 state and federal 735 (available at www. Free tax filing 2012 state and federal irs. Free tax filing 2012 state and federal gov/irb/2009-14_IRB/ar07. Free tax filing 2012 state and federal html). Free tax filing 2012 state and federal Revenue Procedure 2009-20, 2009-14 I. Free tax filing 2012 state and federal R. Free tax filing 2012 state and federal B. Free tax filing 2012 state and federal 749 (available at www. Free tax filing 2012 state and federal irs. Free tax filing 2012 state and federal gov/irb/2009-14_IRB/ar11. Free tax filing 2012 state and federal html). Free tax filing 2012 state and federal Revenue Procedure 2011-58, 2011-50 I. Free tax filing 2012 state and federal R. Free tax filing 2012 state and federal B. Free tax filing 2012 state and federal 849 (available at www. Free tax filing 2012 state and federal irs. Free tax filing 2012 state and federal gov/irb/2011-50_IRB/ar11. Free tax filing 2012 state and federal html). Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Skip lines 19 to 27. Free tax filing 2012 state and federal Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Free tax filing 2012 state and federal You do not need to complete Appendix A. Free tax filing 2012 state and federal For more information, see the above revenue ruling and revenue procedures, and the Instructions for Form 4684. Free tax filing 2012 state and federal   If you choose not to use the procedures in Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate. Free tax filing 2012 state and federal Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Free tax filing 2012 state and federal If you incurred this type of loss, you can choose one of the following ways to deduct the loss. Free tax filing 2012 state and federal As a casualty loss. Free tax filing 2012 state and federal As an ordinary loss. Free tax filing 2012 state and federal As a nonbusiness bad debt. Free tax filing 2012 state and federal Casualty loss or ordinary loss. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal The choice is generally 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. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Once you make this choice, you cannot change it without permission from the Internal Revenue Service. Free tax filing 2012 state and federal   If you claim an ordinary loss, report it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Free tax filing 2012 state and federal The maximum amount you can claim is $20,000 ($10,000 if you are married filing separately) reduced by any expected state insurance proceeds. Free tax filing 2012 state and federal Your loss is subject to the 2%-of-adjusted-gross-income limit. Free tax filing 2012 state and federal You cannot choose to claim an ordinary loss if any part of the deposit is federally insured. Free tax filing 2012 state and federal Nonbusiness bad debt. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal How to report. Free tax filing 2012 state and federal   The kind of deduction you choose for your loss on deposits determines how you report your loss. Free tax filing 2012 state and federal If you choose: Casualty loss — report it on Form 4684 first and then on Schedule A (Form 1040). Free tax filing 2012 state and federal Ordinary loss — report it on Schedule A (Form 1040) as a miscellaneous itemized deduction. Free tax filing 2012 state and federal Nonbusiness bad debt — report it on Form 8949 first and then on Schedule D (Form 1040). Free tax filing 2012 state and federal More information. Free tax filing 2012 state and federal   For more information, see Special Treatment for Losses on Deposits in Insolvent or Bankrupt Financial Institutions in the Instructions for Form 4684 or Deposit in Insolvent or Bankrupt Financial Institution in Publication 550. Free tax filing 2012 state and federal Proof of Loss To deduct a casualty or theft loss, you must be able to prove that you had a casualty or theft. Free tax filing 2012 state and federal You also must be able to support the amount you take as a deduction. Free tax filing 2012 state and federal Casualty loss proof. Free tax filing 2012 state and federal   For a casualty loss, your records should show all the following. Free tax filing 2012 state and federal The type of casualty (car accident, fire, storm, etc. Free tax filing 2012 state and federal ) and when it occurred. Free tax filing 2012 state and federal That the loss was a direct result of the casualty. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Free tax filing 2012 state and federal Theft loss proof. Free tax filing 2012 state and federal   For a theft loss, your records should show all the following. Free tax filing 2012 state and federal When you discovered that your property was missing. Free tax filing 2012 state and federal That your property was stolen. Free tax filing 2012 state and federal That you were the owner of the property. Free tax filing 2012 state and federal Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Free tax filing 2012 state and federal It is important that you have records that will prove your deduction. Free tax filing 2012 state and federal If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. Free tax filing 2012 state and federal Figuring a Loss Figure the amount of your loss using the following steps. Free tax filing 2012 state and federal Determine your adjusted basis in the property before the casualty or theft. Free tax filing 2012 state and federal Determine the decrease in fair market value of the property as a result of the casualty or theft. Free tax filing 2012 state and federal From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Gain from reimbursement. Free tax filing 2012 state and federal   If your reimbursement is more than your adjusted basis in the property, you have a gain. Free tax filing 2012 state and federal This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. Free tax filing 2012 state and federal If you have a gain, you may have to pay tax on it, or you may be able to postpone reporting the gain. Free tax filing 2012 state and federal See Publication 547 for more information on how to treat a gain from a reimbursement for a casualty or theft. Free tax filing 2012 state and federal Leased property. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal FMV of stolen property. Free tax filing 2012 state and federal   The FMV of property immediately after a theft is considered to be zero, since you no longer have the property. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal Several years ago, you purchased silver dollars at face value for $150. Free tax filing 2012 state and federal This is your adjusted basis in the property. Free tax filing 2012 state and federal Your silver dollars were stolen this year. Free tax filing 2012 state and federal The FMV of the coins was $1,000 just before they were stolen, and insurance did not cover them. Free tax filing 2012 state and federal Your theft loss is $150. Free tax filing 2012 state and federal Recovered stolen property. Free tax filing 2012 state and federal   Recovered stolen property is your property that was stolen and later returned to you. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Use this amount to refigure your total loss for the year in which the loss was deducted. Free tax filing 2012 state and federal   If your refigured loss is less than the loss you deducted, you generally have to report the difference as income in the recovery year. Free tax filing 2012 state and federal But report the difference only up to the amount of the loss that reduced your tax. Free tax filing 2012 state and federal For more information on the amount to report, see Recoveries in chapter 12. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal However, other measures can also be used to establish certain decreases. Free tax filing 2012 state and federal Appraisal. Free tax filing 2012 state and federal   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterward should be made by a competent appraiser. Free tax filing 2012 state and federal The appraiser must recognize the effects of any general market decline that may occur along with the casualty. Free tax filing 2012 state and federal This information is needed to limit any deduction to the actual loss resulting from damage to the property. Free tax filing 2012 state and federal   Several factors are important in evaluating the accuracy of an appraisal, including the following. Free tax filing 2012 state and federal The appraiser's familiarity with your property before and after the casualty or theft. Free tax filing 2012 state and federal The appraiser's knowledge of sales of comparable property in the area. Free tax filing 2012 state and federal The appraiser's knowledge of conditions in the area of the casualty. Free tax filing 2012 state and federal The appraiser's method of appraisal. Free tax filing 2012 state and federal    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. Free tax filing 2012 state and federal For more information on disasters, see Disaster Area Losses, in Pub. Free tax filing 2012 state and federal 547. Free tax filing 2012 state and federal Cost of cleaning up or making repairs. Free tax filing 2012 state and federal   The cost of repairing damaged property is not part of a casualty loss. Free tax filing 2012 state and federal Neither is the cost of cleaning up after a casualty. Free tax filing 2012 state and federal But you can use the cost of cleaning up or making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. Free tax filing 2012 state and federal The repairs are actually made. Free tax filing 2012 state and federal The repairs are necessary to bring the property back to its condition before the casualty. Free tax filing 2012 state and federal The amount spent for repairs is not excessive. Free tax filing 2012 state and federal The repairs take care of the damage only. Free tax filing 2012 state and federal The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. Free tax filing 2012 state and federal Landscaping. Free tax filing 2012 state and federal   The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. Free tax filing 2012 state and federal You may be able to measure your loss by what you spend on the following. Free tax filing 2012 state and federal Removing destroyed or damaged trees and shrubs minus any salvage you receive. Free tax filing 2012 state and federal Pruning and other measures taken to preserve damaged trees and shrubs. Free tax filing 2012 state and federal Replanting necessary to restore the property to its approximate value before the casualty. Free tax filing 2012 state and federal Car value. Free tax filing 2012 state and federal    Books issued by various automobile organizations that list your car may be useful in figuring the value of your car. Free tax filing 2012 state and federal You can use the book's retail values and modify them by such factors as mileage and the condition of your car to figure its value. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal If your car is not listed in the books, determine its value from other sources. Free tax filing 2012 state and federal A dealer's offer for your car as a trade-in on a new car is not usually a measure of its true value. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Cost of protection. Free tax filing 2012 state and federal   The cost of protecting your property against a casualty or theft is not part of a casualty or theft loss. Free tax filing 2012 state and federal The amount you spend on insurance or to board up your house against a storm is not part of your loss. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal An example would be the cost of a dike to prevent flooding. Free tax filing 2012 state and federal Exception. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal See Disaster Area Losses in Publication 547. Free tax filing 2012 state and federal Incidental expenses. Free tax filing 2012 state and federal   Any incidental expenses you have 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. Free tax filing 2012 state and federal Replacement cost. Free tax filing 2012 state and federal   The cost of replacing stolen or destroyed property is not part of a casualty or theft loss. Free tax filing 2012 state and federal Sentimental value. Free tax filing 2012 state and federal   Do not consider sentimental value when determining your loss. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Decline in market value of property in or near casualty area. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal You have a loss only for actual casualty damage to your property. Free tax filing 2012 state and federal However, if your home is in a federally declared disaster area, see Disaster Area Losses in Publication 547. Free tax filing 2012 state and federal Costs of photographs and appraisals. Free tax filing 2012 state and federal    Photographs taken after a casualty will be helpful in establishing the condition and value of the property after it was damaged. Free tax filing 2012 state and federal Photographs showing the condition of the property after it was repaired, restored, or replaced may also be helpful. Free tax filing 2012 state and federal    Appraisals are used to figure the decrease in FMV because of a casualty or theft. Free tax filing 2012 state and federal See Appraisal , earlier, under Figuring Decrease in FMV — Items To Consider, for information about appraisals. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal You can claim these costs as a miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income limit on Schedule A (Form 1040). Free tax filing 2012 state and federal For information about miscellaneous deductions, see chapter 28. Free tax filing 2012 state and federal Adjusted Basis Adjusted basis is your basis in the property (usually cost) increased or decreased by various events, such as improvements and casualty losses. Free tax filing 2012 state and federal For more information, see chapter 13. Free tax filing 2012 state and federal Insurance and Other Reimbursements If you receive an insurance payment or other type of reimbursement, you must subtract the reimbursement when you figure your loss. Free tax filing 2012 state and federal You do not have a casualty or theft loss to the extent you are reimbursed. Free tax filing 2012 state and federal If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. Free tax filing 2012 state and federal You must reduce your loss even if you do not receive payment until a later tax year. Free tax filing 2012 state and federal See Reimbursement Received After Deducting Loss , later. Free tax filing 2012 state and federal Failure to file a claim for reimbursement. Free tax filing 2012 state and federal   If your property is covered by insurance, you must file a timely insurance claim for reimbursement of your loss. Free tax filing 2012 state and federal Otherwise, you cannot deduct this loss as a casualty or theft loss. Free tax filing 2012 state and federal However, this rule does not apply to the portion of the loss not covered by insurance (for example, a deductible). Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal You have a car insurance policy with a $1,000 deductible. Free tax filing 2012 state and federal Because your insurance did not cover the first $1,000 of an auto collision, the $1,000 would be deductible (subject to the deduction limits discussed later). Free tax filing 2012 state and federal This is true even if you do not file an insurance claim, because your insurance policy would never have reimbursed you for the deductible. Free tax filing 2012 state and federal Types of Reimbursements The most common type of reimbursement is an insurance payment for your stolen or damaged property. Free tax filing 2012 state and federal Other types of reimbursements are discussed next. Free tax filing 2012 state and federal Also see the Instructions for Form 4684. Free tax filing 2012 state and federal Employer's emergency disaster fund. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal Take into consideration only the amount you used to replace your destroyed or damaged property. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal Your home was extensively damaged by a tornado. Free tax filing 2012 state and federal Your loss after reimbursement from your insurance company was $10,000. Free tax filing 2012 state and federal Your employer set up a disaster relief fund for its employees. Free tax filing 2012 state and federal Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. Free tax filing 2012 state and federal You received $4,000 from the fund and spent the entire amount on repairs to your home. Free tax filing 2012 state and federal In figuring your casualty loss, you must reduce your unreimbursed loss ($10,000) by the $4,000 you received from your employer's fund. Free tax filing 2012 state and federal Your casualty loss before applying the deduction limits discussed later is $6,000. Free tax filing 2012 state and federal Cash gifts. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal This applies even if you use the money to pay for repairs to property damaged in the disaster. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal Your home was damaged by a hurricane. Free tax filing 2012 state and federal Relatives and neighbors made cash gifts to you that were excludable from your income. Free tax filing 2012 state and federal You used part of the cash gifts to pay for repairs to your home. Free tax filing 2012 state and federal There were no limits or restrictions on how you could use the cash gifts. Free tax filing 2012 state and federal Because it was an excludable gift, the money you received and used to pay for repairs to your home does not reduce your casualty loss on the damaged home. Free tax filing 2012 state and federal Insurance payments for living expenses. Free tax filing 2012 state and federal   You do not reduce your casualty loss by insurance payments you receive to cover living expenses in either of the following situations. Free tax filing 2012 state and federal You lose the use of your main home because of a casualty. Free tax filing 2012 state and federal Government authorities do not allow you access to your main home because of a casualty or threat of one. Free tax filing 2012 state and federal Inclusion in income. Free tax filing 2012 state and federal   If these insurance payments are more than the temporary increase in your living expenses, you must include the excess in your income. Free tax filing 2012 state and federal Report this amount on Form 1040, line 21. Free tax filing 2012 state and federal However, if the casualty occurs in a federally declared disaster area, none of the insurance payments are taxable. Free tax filing 2012 state and federal See Qualified disaster relief payments, under Disaster Area Losses in Publication 547. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. Free tax filing 2012 state and federal Generally, these expenses include the amounts you pay for the following. Free tax filing 2012 state and federal Rent for suitable housing. Free tax filing 2012 state and federal Transportation. Free tax filing 2012 state and federal Food. Free tax filing 2012 state and federal Utilities. Free tax filing 2012 state and federal Miscellaneous services. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal As a result of a fire, you vacated your apartment for a month and moved to a motel. Free tax filing 2012 state and federal You normally pay $525 a month for rent. Free tax filing 2012 state and federal None was charged for the month the apartment was vacated. Free tax filing 2012 state and federal Your motel rent for this month was $1,200. Free tax filing 2012 state and federal You normally pay $200 a month for food. Free tax filing 2012 state and federal Your food expenses for the month you lived in the motel were $400. Free tax filing 2012 state and federal You received $1,100 from your insurance company to cover your living expenses. Free tax filing 2012 state and federal You determine the payment you must include in income as follows. Free tax filing 2012 state and federal 1) Insurance payment for living expenses $1,100 2) Actual expenses during the month you are unable to use your home because of fire 1,600   3) Normal living expenses 725   4) Temporary increase in living  expenses: Subtract line 3 from line 2 875 5) Amount of payment includible  in income: Subtract line 4  from line 1 $ 225 Tax year of inclusion. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal Your main home was destroyed by a tornado in August 2011. Free tax filing 2012 state and federal You regained use of your home in November 2012. Free tax filing 2012 state and federal The insurance payments you received in 2011 and 2012 were $1,500 more than the temporary increase in your living expenses during those years. Free tax filing 2012 state and federal You include this amount in income on your 2012 Form 1040. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Disaster relief. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal Qualified disaster relief payments you receive for expenses you incurred as a result of a federally declared disaster are not taxable income to you. Free tax filing 2012 state and federal For more information, see Disaster Area Losses in Publication 547. Free tax filing 2012 state and federal Disaster unemployment assistance payments are unemployment benefits that are taxable. Free tax filing 2012 state and federal Generally, disaster relief grants and qualified disaster mitigation payments made under the Robert T. Free tax filing 2012 state and federal Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not includible in your income. Free tax filing 2012 state and federal See Disaster Area Losses in Publication 547. Free tax filing 2012 state and federal Reimbursement Received After Deducting Loss If you figured your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you receive your actual reimbursement. Free tax filing 2012 state and federal This section explains the adjustment you may have to make. Free tax filing 2012 state and federal Actual reimbursement less than expected. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal Your personal car had an FMV of $2,000 when it was destroyed in a collision with another car in 2012. Free tax filing 2012 state and federal The accident was due to the negligence of the other driver. Free tax filing 2012 state and federal At the end of 2012, there was a reasonable prospect that the owner of the other car would reimburse you in full. Free tax filing 2012 state and federal You did not have a deductible loss in 2012. Free tax filing 2012 state and federal In January 2013, the court awarded you a judgment of $2,000. Free tax filing 2012 state and federal However, in July it became apparent that you will be unable to collect any amount from the other driver. Free tax filing 2012 state and federal You can deduct the loss in 2013 subject to the limits discussed later. Free tax filing 2012 state and federal Actual reimbursement more than expected. Free tax filing 2012 state and federal   If you later receive more reimbursement than you expected after you claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal You do not refigure your tax for the year you claimed the deduction. Free tax filing 2012 state and federal For more information, see Recoveries in chapter 12. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Include the gain as ordinary income up to the amount of your deduction that reduced your tax for the earlier year. Free tax filing 2012 state and federal See Figuring a Gain in Publication 547 for more information on how to treat a gain from the reimbursement of a casualty or theft. Free tax filing 2012 state and federal Actual reimbursement same as expected. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal In December 2013, you had a collision while driving your personal car. Free tax filing 2012 state and federal Repairs to the car cost $950. Free tax filing 2012 state and federal You had $100 deductible collision insurance. Free tax filing 2012 state and federal Your insurance company agreed to reimburse you for the rest of the damage. Free tax filing 2012 state and federal Because you expected a reimbursement from the insurance company, you did not have a casualty loss deduction in 2013. Free tax filing 2012 state and federal Due to the $100 rule (discussed later under Deduction Limits ), you cannot deduct the $100 you paid as the deductible. Free tax filing 2012 state and federal When you receive the $850 from the insurance company in 2014, do not report it as income. Free tax filing 2012 state and federal Single Casualty on Multiple Properties Personal property. Free tax filing 2012 state and federal   Personal property is any property that is not real property. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Then combine these separate losses to figure the total loss from that casualty or theft. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal A fire in your home destroyed an upholstered chair, an oriental rug, and an antique table. Free tax filing 2012 state and federal You did not have fire insurance to cover your loss. Free tax filing 2012 state and federal (This was the only casualty or theft you had during the year. Free tax filing 2012 state and federal ) You paid $750 for the chair and you established that it had an FMV of $500 just before the fire. Free tax filing 2012 state and federal The rug cost $3,000 and had an FMV of $2,500 just before the fire. Free tax filing 2012 state and federal You bought the table at an auction for $100 before discovering it was an antique. Free tax filing 2012 state and federal It had been appraised at $900 before the fire. Free tax filing 2012 state and federal You figure your loss on each of these items as follows:     Chair Rug Table 1) Basis (cost) $750 $3,000 $100 2) FMV before fire $500 $2,500 $900 3) FMV after fire –0– –0– –0– 4) Decrease in FMV $500 $2,500 $900 5) Loss (smaller of (1) or  (4)) $500 $2,500 $100           6) Total loss     $3,100 Real property. Free tax filing 2012 state and federal   In figuring a casualty loss on personal-use real property, treat the entire property (including any improvements, such as buildings, trees, and shrubs) as one item. Free tax filing 2012 state and federal Figure the loss using the smaller of the adjusted basis or the decrease in FMV of the entire property. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal You bought your home a few years ago. Free tax filing 2012 state and federal You paid $160,000 ($20,000 for the land and $140,000 for the house). Free tax filing 2012 state and federal You also spent $2,000 for landscaping. Free tax filing 2012 state and federal This year a fire destroyed your home. Free tax filing 2012 state and federal The fire also damaged the shrubbery and trees in your yard. Free tax filing 2012 state and federal The fire was your only casualty or theft loss this year. Free tax filing 2012 state and federal Competent appraisers valued the property as a whole at $200,000 before the fire, but only $30,000 after the fire. Free tax filing 2012 state and federal (The loss to your household furnishings is not shown in this example. Free tax filing 2012 state and federal It would be figured separately on each item, as explained earlier under Personal property . Free tax filing 2012 state and federal ) Shortly after the fire, the insurance company paid you $155,000 for the loss. Free tax filing 2012 state and federal You figure your casualty loss as follows: 1) Adjusted basis of the entire property (land, building, and landscaping) $162,000 2) FMV of entire property before fire $200,000 3) FMV of entire property after fire 30,000 4) Decrease in FMV of entire  property $170,000 5) Loss (smaller of (1) or (4)) $162,000 6) Subtract insurance 155,000 7) Amount of loss after reimbursement $7,000 Deduction Limits After you have figured your casualty or theft loss, you must figure how much of the loss you can deduct. Free tax filing 2012 state and federal If the loss was to property for your personal use or your family's use, there are two limits on the amount you can deduct for your casualty or theft loss. Free tax filing 2012 state and federal You must reduce each casualty or theft loss by $100 ($100 rule). Free tax filing 2012 state and federal You must further reduce the total of all your casualty or theft losses by 10% of your adjusted gross income (10% rule). Free tax filing 2012 state and federal You make these reductions on Form 4684. Free tax filing 2012 state and federal These rules are explained next and Table 25-1 summarizes how to apply the $100 rule and the 10% rule in various situations. Free tax filing 2012 state and federal For more detailed explanations and examples, see Publication 547. Free tax filing 2012 state and federal Table 25-1. Free tax filing 2012 state and federal How To Apply the Deduction Limits for Personal-Use Property   $100 Rule 10% Rule General Application You must reduce each casualty or theft loss by $100 when figuring your deduction. Free tax filing 2012 state and federal Apply this rule after you have figured the amount of your loss. Free tax filing 2012 state and federal You must reduce your total casualty or theft loss by 10% of your adjusted gross income. Free tax filing 2012 state and federal Apply this rule after you reduce each loss by $100 (the $100 rule). Free tax filing 2012 state and federal Single Event Apply this rule only once, even if many pieces of property are affected. Free tax filing 2012 state and federal Apply this rule only once, even if many pieces of property are affected. Free tax filing 2012 state and federal More Than One Event Apply to the loss from each event. Free tax filing 2012 state and federal Apply to the total of all your losses from all events. Free tax filing 2012 state and federal More Than One Person— With Loss From the Same Event (other than a married couple filing jointly) Apply separately to each person. Free tax filing 2012 state and federal Apply separately to each person. Free tax filing 2012 state and federal Married Couple—With Loss From the Same Event Filing Jointly Apply as if you were one person. Free tax filing 2012 state and federal Apply as if you were one person. Free tax filing 2012 state and federal Filing Separately Apply separately to each spouse. Free tax filing 2012 state and federal Apply separately to each spouse. Free tax filing 2012 state and federal More Than One Owner (other than a married couple filing jointly) Apply separately to each owner of jointly owned property. Free tax filing 2012 state and federal Apply separately to each owner of jointly owned property. Free tax filing 2012 state and federal Property used partly for business and partly for personal purposes. Free tax filing 2012 state and federal   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 part and for the business or income-producing part. Free tax filing 2012 state and federal You must figure each loss separately because the $100 rule and the 10% rule apply only to the loss on the personal-use part of the property. Free tax filing 2012 state and federal $100 Rule After you have figured your casualty or theft loss on personal-use property, you must reduce that loss by $100. Free tax filing 2012 state and federal This reduction applies to each total casualty or theft loss. Free tax filing 2012 state and federal It does not matter how many pieces of property are involved in an event. Free tax filing 2012 state and federal Only a single $100 reduction applies. Free tax filing 2012 state and federal Example. Free tax filing 2012 state and federal A hailstorm damages your home and your car. Free tax filing 2012 state and federal Determine the amount of loss, as discussed earlier, for each of these items. Free tax filing 2012 state and federal Since the losses are due to a single event, you combine the losses and reduce the combined amount by $100. Free tax filing 2012 state and federal Single event. Free tax filing 2012 state and federal   Generally, events closely related in origin cause a single casualty. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Apply this rule after you reduce each loss by $100. Free tax filing 2012 state and federal For more information, see the Form 4684 instructions. Free tax filing 2012 state and federal If you have both gains and losses from casualties or thefts, see Gains and losses , later in this discussion. Free tax filing 2012 state and federal Example 1. Free tax filing 2012 state and federal In June, you discovered that your house had been burglarized. Free tax filing 2012 state and federal Your loss after insurance reimbursement was $2,000. Free tax filing 2012 state and federal Your adjusted gross income for the year you discovered the theft is $29,500. Free tax filing 2012 state and federal You first apply the $100 rule and then the 10% rule. Free tax filing 2012 state and federal Figure your theft loss deduction as follows. Free tax filing 2012 state and federal 1) Loss after insurance $2,000 2) Subtract $100 100 3) Loss after $100 rule $1,900 4) Subtract 10% × $29,500 AGI 2,950 5) Theft loss deduction –0– You do not have a theft loss deduction because your loss after you apply the $100 rule ($1,900) is less than 10% of your adjusted gross income ($2,950). Free tax filing 2012 state and federal Example 2. Free tax filing 2012 state and federal In March, you had a car accident that totally destroyed your car. Free tax filing 2012 state and federal You did not have collision insurance on your car, so you did not receive any insurance reimbursement. Free tax filing 2012 state and federal Your loss on the car was $1,800. Free tax filing 2012 state and federal In November, a fire damaged your basement and totally destroyed the furniture, washer, dryer, and other items stored there. Free tax filing 2012 state and federal Your loss on the basement items after reimbursement was $2,100. Free tax filing 2012 state and federal Your adjusted gross income for the year that the accident and fire occurred is $25,000. Free tax filing 2012 state and federal You figure your casualty loss deduction as follows. Free tax filing 2012 state and federal       Base-     Car ment 1) Loss $1,800 $2,100 2) Subtract $100 per incident 100 100 3) Loss after $100 rule $1,700 $2,000 4) Total loss $3,700 5) Subtract 10% × $25,000 AGI 2,500 6) Casualty loss deduction $1,200 Gains and losses. Free tax filing 2012 state and federal   If you had both gains and losses from casualties or thefts to personal-use property, you must compare your total gains to your total losses. Free tax filing 2012 state and federal 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. Free tax filing 2012 state and federal Casualty or theft gains do not include gains you choose to postpone. Free tax filing 2012 state and federal See Publication 547 for information on the postponement of gain. Free tax filing 2012 state and federal Losses more than gains. Free tax filing 2012 state and federal   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. Free tax filing 2012 state and federal The rest, if any, is your deductible loss from personal-use property. Free tax filing 2012 state and federal Gains more than losses. Free tax filing 2012 state and federal   If your recognized gains are more than your losses, subtract your losses from your gains. Free tax filing 2012 state and federal The difference is treated as capital gain and must be reported on Schedule D (Form 1040). Free tax filing 2012 state and federal The 10% rule does not apply to your gains. Free tax filing 2012 state and federal When To Report Gains and Losses Gains. Free tax filing 2012 state and federal   If you receive an insurance or other reimbursement that is more than your adjusted basis in the destroyed or stolen property, you have a gain from the casualty or theft. Free tax filing 2012 state and federal You must include this gain in your income in the year you receive the reimbursement, unless you choose to postpone reporting the gain as explained in Publication 547. Free tax filing 2012 state and federal If you have a loss, see Table 25-2 . Free tax filing 2012 state and federal Table 25-2. Free tax filing 2012 state and federal When To Deduct a Loss IF you have a loss. Free tax filing 2012 state and federal . Free tax filing 2012 state and federal . Free tax filing 2012 state and federal THEN deduct it in the year. Free tax filing 2012 state and federal . Free tax filing 2012 state and federal . Free tax filing 2012 state and federal from a casualty, the loss occurred. Free tax filing 2012 state and federal in a federally declared disaster area, the disaster occurred or the year immediately before the disaster. Free tax filing 2012 state and federal from a theft, the theft was discovered. Free tax filing 2012 state and federal on a deposit treated as a:   • casualty or any ordinary loss, a reasonable estimate can be made. Free tax filing 2012 state and federal • bad debt, deposits are totally worthless. Free tax filing 2012 state and federal Losses. Free tax filing 2012 state and federal   Generally, you can deduct a casualty loss that is not reimbursable only in the tax year in which the casualty occurred. Free tax filing 2012 state and federal This is true even if you do not repair or replace the damaged property until a later year. Free tax filing 2012 state and federal   You can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. Free tax filing 2012 state and federal   If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become reasonably certain that it will not be reimbursed. Free tax filing 2012 state and federal Loss on deposits. Free tax filing 2012 state and federal   If your loss is a loss on deposits in an insolvent or bankrupt financial institution, see Loss on Deposits , earlier. Free tax filing 2012 state and federal Disaster Area Loss You generally must deduct a casualty loss in the year it occurred. Free tax filing 2012 state and federal However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct the loss on your tax return or amended return for either of the following years. Free tax filing 2012 state and federal The year the disaster occurred. Free tax filing 2012 state and federal The year immediately preceding the year the disaster occurred. Free tax filing 2012 state and federal Gains. Free tax filing 2012 state and federal    Special rules apply if you choose to postpone reporting gain on property damaged or destroyed in a federally declared disaster area. Free tax filing 2012 state and federal For those special rules, see Publication 547. Free tax filing 2012 state and federal Postponed tax deadlines. Free tax filing 2012 state and federal   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. Free tax filing 2012 state and federal The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Free tax filing 2012 state and federal   If any tax deadline is postponed, the IRS will publicize the postponement in your area by publishing a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Free tax filing 2012 state and federal Go to www. Free tax filing 2012 state and federal irs. Free tax filing 2012 state and federal gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. Free tax filing 2012 state and federal Who is eligible. Free tax filing 2012 state and federal   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Free tax filing 2012 state and federal Any individual whose main home is located in a covered disaster area (defined next). Free tax filing 2012 state and federal Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Free tax filing 2012 state and federal Any individual who is a relief worker affiliated with a recognized government or philanthropic organization who is assisting in a covered disaster area. Free tax filing 2012 state and federal Any individual, business entity, or sole proprietorship whose records are needed to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Free tax filing 2012 state and federal The main home or principal place of business does not have to be located in the covered disaster area. Free tax filing 2012 state and federal Any estate or trust that has tax records necessary to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Free tax filing 2012 state and federal The spouse on a joint return with a taxpayer who is eligible for postponements. Free tax filing 2012 state and federal Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose records necessary to meet a postponed tax deadline are located in the covered disaster area. Free tax filing 2012 state and federal Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. Free tax filing 2012 state and federal Any other person determined by the IRS to be affected by a federally declared disaster. Free tax filing 2012 state and federal Covered disaster area. Free tax filing 2012 state and federal   This is an area of a federally declared disaster in which the IRS has decided to postpone tax deadlines for up to 1 year. Free tax filing 2012 state and federal Abatement of interest and penalties. Free tax filing 2012 state and federal   The IRS may abate the interest and penalties on underpaid income tax for the length of any postponement of tax deadlines. Free tax filing 2012 state and federal More information. Free tax filing 2012 state and federal   For more information, see Disaster Area Losses in Publication 547. Free tax filing 2012 state and federal How To Report Gains and Losses Use Form 4684 to report a gain or a deductible loss from a casualty or theft. Free tax filing 2012 state and federal If you have more than one casualty or theft, use a separate Form 4684 to determine your gain or loss for each event. Free tax filing 2012 state and federal Combine the gains and losses on one Form 4684. Free tax filing 2012 state and federal Follow the form instructions as to which lines to fill out. Free tax filing 2012 state and federal In addition, you must use the appropriate schedule to report a gain or loss. Free tax filing 2012 state and federal The schedule you use depends on whether you have a gain or loss. Free tax filing 2012 state and federal If you have a: Report it on: Gain Schedule D (Form 1040) Loss Schedule A (Form 1040) Adjustments to basis. Free tax filing 2012 state and federal   If you have a casualty or theft loss, you must decrease your basis in the property by any insurance or other reimbursement you receive, and by any deductible loss. Free tax filing 2012 state and federal Amounts you spend to restore your property after a casualty increase your adjusted basis. Free tax filing 2012 state and federal See Adjusted Basis in chapter 13 for more information. Free tax filing 2012 state and federal Net operating loss (NOL). Free tax filing 2012 state and federal    If your casualty or theft loss deduction causes your deductions for the year to be more than your income for the year, you may have an NOL. Free tax filing 2012 state and federal You can use an NOL to lower your tax in an earlier year, allowing you to get a refund for tax you have already paid. Free tax filing 2012 state and federal Or, you can use it to lower your tax in a later year. Free tax filing 2012 state and federal You do not have to be in business to have an NOL from a casualty or theft loss. Free tax filing 2012 state and federal For more information, see Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. Free tax filing 2012 state and federal Prev  Up  Next   Home   More Online Publications