Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

H&r Block Free Tax File 2012

How To File Taxes If Self EmployedNeed To File 2012 Tax ReturnsFile A 2011 Tax Return OnlineIncome Tax Forms For 2012Irs Form 1040ez InstructionsTax Preparation SoftwareHr Block Free EfileIrs Tax Filing For 2012Tax Amendment Form 2011Filing 2011 Taxes In 2013Filing Taxes As UnemployedNeed 2009 Tax Return2012 State Taxes Online Free2010 Form 1040Free State Income Tax PreparationHow To Do An Amendment Tax ReturnTax Software ReviewTaxes LateEfile State TaxFiling 2007 Tax Return LateFederal Tax Forms 2012 1040Turbotax Deluxe Federal E File State 2012 For Pc Download2011 Free Tax UsaWww H And R Block ComIrs Free File Tax ReturnHrblockfreeFederal Tax Forms 1040ez 2013Irs Form 1040x InstructionsTax Form 1040aHow To Do An Amended Tax ReturnMilitary State Tax ExemptionsIrs Amendment FormsWhere Can I File My 2010 Taxes For FreeAmend My 2011 TaxesWhere Can I File My Federal And State Taxes For FreeCan I Efile My 2010 Taxes Now1040ez Instruction BookletFree H And R Block Online2012 State Income Tax FormsMilitary H And R Block

H&r Block Free Tax File 2012

H&r block free tax file 2012 3. H&r block free tax file 2012   Claiming the Special Depreciation Allowance Table of Contents Introduction What Is Qualified Property?Qualified Reuse and Recycling Property Qualified Cellulosic Biofuel Plant Property Qualified Disaster Assistance Property Certain Qualified Property Acquired After December 31, 2007 Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance How Much Can You Deduct? How Can You Elect Not To Claim an Allowance? When Must You Recapture an Allowance? Introduction You can take a special depreciation allowance to recover part of the cost of qualified property (defined next), placed in service during the tax year. H&r block free tax file 2012 The allowance applies only for the first year you place the property in service. H&r block free tax file 2012 For qualified property placed in service in 2013, you can take an additional 50% special allowance. H&r block free tax file 2012 The allowance is an additional deduction you can take after any section 179 deduction and before you figure regular depreciation under MACRS for the year you place the property in service. H&r block free tax file 2012 This chapter explains what is qualified property. H&r block free tax file 2012 It also includes rules regarding how to figure an allowance, how to elect not to claim an allowance, and when you must recapture an allowance. H&r block free tax file 2012 Corporations can elect to accelerate certain minimum tax credits in lieu of claiming the special depreciation allowance for eligible qualified property. H&r block free tax file 2012 See Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance , later. H&r block free tax file 2012 See chapter 6 for information about getting publications and forms. H&r block free tax file 2012 What Is Qualified Property? Your property is qualified property if it is one of the following. H&r block free tax file 2012 Qualified reuse and recycling property. H&r block free tax file 2012 Qualified cellulosic biofuel plant property. H&r block free tax file 2012 Qualified disaster assistance property. H&r block free tax file 2012 Certain qualified property acquired after December 31, 2007. H&r block free tax file 2012 The following discussions provide information about the types of qualified property listed above for which you can take the special depreciation allowance. H&r block free tax file 2012 Qualified Reuse and Recycling Property You can take a 50% special depreciation allowance for qualified reuse and recycling property. H&r block free tax file 2012 Qualified reuse and recycling property is any machinery or equipment (not including buildings or real estate), along with any appurtenance, that is used exclusively to collect, distribute, or recycle qualified reuse and recyclable materials (as defined in section 168(m)(3)(B) of the Internal Revenue Code). H&r block free tax file 2012 Qualified reuse and recycling property also includes software necessary to operate such equipment. H&r block free tax file 2012 The property must meet the following requirements. H&r block free tax file 2012 The property must be depreciated under MACRS. H&r block free tax file 2012 The property must have a useful life of at least 5 years. H&r block free tax file 2012 The original use of the property must begin with you after August 31, 2008. H&r block free tax file 2012 You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) after August 31, 2008, with no binding written contract for the acquisition in effect before September 1, 2008. H&r block free tax file 2012 The property must be placed in service for use in your trade or business after August 31, 2008. H&r block free tax file 2012 Excepted Property Qualified reuse and recycling property does not include any of the following. H&r block free tax file 2012 Any rolling stock or other equipment used to transport reuse or recyclable materials. H&r block free tax file 2012 Property required to be depreciated using the Alternative Depreciation System (ADS). H&r block free tax file 2012 For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . H&r block free tax file 2012 Other bonus depreciation property to which section 168(k) of the Internal Revenue Code applies. H&r block free tax file 2012 Property for which you elected not to claim any special depreciation allowance (discussed later). H&r block free tax file 2012 Property placed in service and disposed of in the same tax year. H&r block free tax file 2012 Property converted from business use to personal use in the same tax year acquired. H&r block free tax file 2012 Property converted from personal use to business use in the same or later tax year may be qualified reuse and recycling property. H&r block free tax file 2012 Qualified Cellulosic Biofuel Plant Property You can take a 50% special depreciation allowance for qualified cellulosic biofuel plant property. H&r block free tax file 2012 Cellulosic biofuel is any liquid fuel which is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis. H&r block free tax file 2012 Examples include bagasse (from sugar cane), corn stalks, and switchgrass. H&r block free tax file 2012 The property must meet the following requirements. H&r block free tax file 2012 The property is used in the United States solely to produce cellulosic biofuel. H&r block free tax file 2012 The original use of the property must begin with you after December 20, 2006. H&r block free tax file 2012 You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) after December 20, 2006, with no binding written contract for acquisition in effect before December 21, 2006. H&r block free tax file 2012 The property must be placed in service for use in your trade or business or for the production of income after October 3, 2008, and before January 3, 2013. H&r block free tax file 2012 Note. H&r block free tax file 2012 For property placed in service after January 2, 2013, and before January 1, 2014, you can take a 50% special depreciation allowance for qualified second generation biofuel plant property that is used solely in the United States to produce second generation biofuel (as defined in section 40(b)(6)(E)). H&r block free tax file 2012 The other requirements for qualified second generation biofuel plant property to be eligible for the special depreciation allowance are identical to the requirements discussed for Qualified Cellulosic Biofuel Plant Property above. H&r block free tax file 2012 Special Rules Sale-leaseback. H&r block free tax file 2012   If you sold qualified cellulosic biofuel plant property you placed in service after October 3, 2008, and leased it back within 3 months after you originally placed it in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. H&r block free tax file 2012   The property will not qualify for the special allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before December 21, 2006. H&r block free tax file 2012 Syndicated leasing transactions. H&r block free tax file 2012   If qualified cellulosic biofuel plant property is originally placed in service by a lessor after October 3, 2008, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. H&r block free tax file 2012   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of sale if the property is sold within 3 months after the final unit is placed in service and the period between the times the first and last units are placed in service does not exceed 12 months. H&r block free tax file 2012 Excepted Property Qualified cellulosic biofuel plant property does not include any of the following. H&r block free tax file 2012 Property placed in service and disposed of in the same tax year. H&r block free tax file 2012 Property converted from business use to personal use in the same tax year it is acquired. H&r block free tax file 2012 Property converted from personal use to business use in the same or later tax year may be qualified cellulosic biomass ethanol plant property. H&r block free tax file 2012 Property required to be depreciated using the Alternative Depreciation System (ADS). H&r block free tax file 2012 For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . H&r block free tax file 2012 Property any portion of which is financed with the proceeds of any obligation the interest on which is exempt from tax under section 103 of the Internal Revenue Code. H&r block free tax file 2012 Property for which you elected not to claim any special depreciation allowance (discussed later). H&r block free tax file 2012 Property for which a deduction was taken under section 179C for certain qualified refinery property. H&r block free tax file 2012 Other bonus depreciation property to which section 168(k) of the Internal Revenue Code applies. H&r block free tax file 2012 Qualified Disaster Assistance Property You can take a 50% special depreciation allowance for qualified disaster assistance property placed in service in federally declared disaster areas in which the disaster occurred in 2009. H&r block free tax file 2012 A list of the federally declared disaster areas is available at the FEMA website at www. H&r block free tax file 2012 fema. H&r block free tax file 2012 gov. H&r block free tax file 2012 Your property is qualified disaster assistance property if it meets the following requirements. H&r block free tax file 2012 The property is nonresidential real property or residential real property placed in service before January 1, 2014, in a federally declared disaster area in which the disaster occurred in 2009. H&r block free tax file 2012 You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) on or after the applicable disaster date, with no binding written contract for the acquisition in effect before the applicable disaster date. H&r block free tax file 2012 The property must rehabilitate property damaged, or replace property destroyed or condemned, as a result of the applicable federally declared disaster. H&r block free tax file 2012 The property must be similar in nature to, and located in the same county as, the rehabilitated or replaced property. H&r block free tax file 2012 The original use of the property within the applicable disaster area must have begun with you on or after the applicable disaster date. H&r block free tax file 2012 The property is placed in service by you on or before the date which is the last day of the fourth calendar year. H&r block free tax file 2012 Substantially all (80% or more) of the use of the property must be in the active conduct of your trade or business in a federally declared disaster area, occurring in 2009. H&r block free tax file 2012 It is not excepted property (explained later in Excepted Property ). H&r block free tax file 2012 Special Rules Sale-leaseback. H&r block free tax file 2012   If you sold qualified disaster assistance property you placed in service after the applicable disaster date and leased it back within 3 months after you originally placed it in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. H&r block free tax file 2012   The property will not qualify for the special allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before the applicable disaster date. H&r block free tax file 2012 Syndicated leasing transactions. H&r block free tax file 2012   If qualified disaster assistance property is originally placed in service by a lessor after the applicable disaster date, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. H&r block free tax file 2012   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of sale if the property is sold within 3 months after the final unit is placed in service and the period between the times the first and last units are placed in service does not exceed 12 months. H&r block free tax file 2012 Excepted Property Qualified disaster assistance property does not include any of the following. H&r block free tax file 2012 Property required to be depreciated using the Alternative Depreciation System (ADS). H&r block free tax file 2012 For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . H&r block free tax file 2012 Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103 of the Internal Revenue Code. H&r block free tax file 2012 Any qualified revitalization building (defined later) placed in service before January 1, 2010, for which you have elected to claim a commercial revitalization deduction for qualified revitalization expenditures. H&r block free tax file 2012 Any property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store, the principal business of which is the sale of alcoholic beverages for consumption off premises. H&r block free tax file 2012 Any property for which the special allowance under section 168(k) or section 1400N(d) of the Internal Revenue Code applies. H&r block free tax file 2012 Property for which you elected not to claim any special depreciation allowance (discussed later). H&r block free tax file 2012 Property placed in service and disposed of in the same tax year. H&r block free tax file 2012 Property converted from business use to personal use in the same tax year acquired. H&r block free tax file 2012 Property converted from personal use to business use in the same or later tax year may be qualified disaster assistance property. H&r block free tax file 2012 Any gambling or animal racing property (defined later). H&r block free tax file 2012 Qualified revitalization building. H&r block free tax file 2012   This is a commercial building and its structural components that you placed in service in a renewal community before January 1, 2010. H&r block free tax file 2012 If the building is new, the original use of the building must begin with you. H&r block free tax file 2012 If the building is not new, you must substantially rehabilitate the building and then place it in service. H&r block free tax file 2012 For more information, including definitions of substantially rehabilitated building and qualified revitalization expenditure, see section 1400I(b) of the Internal Revenue Code. H&r block free tax file 2012 Gambling or animal racing property. H&r block free tax file 2012   Gambling or animal racing property includes the following personal and real property. H&r block free tax file 2012 Any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing. H&r block free tax file 2012 Any real property determined by square footage (other than any portion that is less than 100 square feet) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing. H&r block free tax file 2012 Certain Qualified Property Acquired After December 31, 2007 You can take a 50% special depreciation deduction allowance for certain qualified property acquired after December 31, 2007. H&r block free tax file 2012 Your property is qualified property if it meets the following requirements. H&r block free tax file 2012 It is one of the following types of property. H&r block free tax file 2012 Tangible property depreciated under MACRS with a recovery period of 20 years or less. H&r block free tax file 2012 Water utility property. H&r block free tax file 2012 Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. H&r block free tax file 2012 (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. H&r block free tax file 2012 ) Qualified leasehold improvement property (defined under Qualified leasehold improvement property later). H&r block free tax file 2012 You must have acquired the property after December 31, 2007, with no binding written contract for the acquisition in effect before January 1, 2008. H&r block free tax file 2012 The property must be placed in service for use in your trade or business or for the production of income before January 1, 2014 (before January 1, 2015, for certain property with a long production period and certain aircraft (defined next)). H&r block free tax file 2012 The original use of the property must begin with you after December 31, 2007. H&r block free tax file 2012 It is not excepted property (explained later in Excepted property). H&r block free tax file 2012 Qualified leasehold improvement property. H&r block free tax file 2012    Generally, this is any improvement to an interior part of a building that is nonresidential real property, if all the following requirements are met. H&r block free tax file 2012 The improvement is made under or according to a lease by the lessee (or any sublessee) or the lessor of that part of the building. H&r block free tax file 2012 That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. H&r block free tax file 2012 The improvement is placed in service more than 3 years after the date the building was first placed in service by any person. H&r block free tax file 2012 The improvement is section 1250 property. H&r block free tax file 2012 See chapter 3 in Publication 544, Sales and Other Dispositions of Assets, for the definition of section 1250 property. H&r block free tax file 2012   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. H&r block free tax file 2012 The enlargement of the building. H&r block free tax file 2012 Any elevator or escalator. H&r block free tax file 2012 Any structural component benefiting a common area. H&r block free tax file 2012 The internal structural framework of the building. H&r block free tax file 2012   Generally, a binding commitment to enter into a lease is treated as a lease and the parties to the commitment are treated as the lessor and lessee. H&r block free tax file 2012 However, a lease between related persons is not treated as a lease. H&r block free tax file 2012 Related persons. H&r block free tax file 2012   For this purpose, the following are related persons. H&r block free tax file 2012 Members of an affiliated group. H&r block free tax file 2012 An individual and a member of his or her family, including only a spouse, child, parent, brother, sister, half-brother, half-sister, ancestor, and lineal descendant. H&r block free tax file 2012 A corporation and an individual who directly or indirectly owns 80% or more of the value of the outstanding stock of that corporation. H&r block free tax file 2012 Two corporations that are members of the same controlled group. H&r block free tax file 2012 A trust fiduciary and a corporation if 80% or more of the value of the outstanding stock is directly or indirectly owned by or for the trust or grantor of the trust. H&r block free tax file 2012 The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. H&r block free tax file 2012 The fiduciaries of two different trusts, and the fiduciaries and beneficiaries of two different trusts, if the same person is the grantor of both trusts. H&r block free tax file 2012 A tax-exempt educational or charitable organization and any person (or, if that person is an individual, a member of that person's family) who directly or indirectly controls the organization. H&r block free tax file 2012 Two S corporations, and an S corporation and a regular corporation, if the same persons own 80% or more of the value of the outstanding stock of each corporation. H&r block free tax file 2012 A corporation and a partnership if the same persons own both of the following. H&r block free tax file 2012 80% or more of the value of the outstanding stock of the corporation. H&r block free tax file 2012 80% or more of the capital or profits interest in the partnership. H&r block free tax file 2012 The executor and beneficiary of any estate. H&r block free tax file 2012 Long Production Period Property To be qualified property, long production period property must meet the following requirements. H&r block free tax file 2012 It must meet the requirements in (2)-(5), above. H&r block free tax file 2012 The property has a recovery period of at least 10 years or is transportation property. H&r block free tax file 2012 Transportation property is tangible personal property used in the trade or business of transporting persons or property. H&r block free tax file 2012 The property is subject to section 263A of the Internal Revenue Code. H&r block free tax file 2012 The property has an estimated production period exceeding 1 year and an estimated production cost exceeding $1,000,000. H&r block free tax file 2012 Noncommercial Aircraft To be qualified property, noncommercial aircraft must meet the following requirements. H&r block free tax file 2012 It must meet the requirements in (2)-(5), above. H&r block free tax file 2012 The aircraft must not be tangible personal property used in the trade or business of transporting persons or property (except for agricultural or firefighting purposes). H&r block free tax file 2012 The aircraft must be purchased (as discussed under Property Acquired by Purchase in chapter 2 ) by a purchaser who at the time of the contract for purchase, makes a nonrefundable deposit of the lesser of 10% of the cost or $100,000. H&r block free tax file 2012 The aircraft must have an estimated production period exceeding four months and a cost exceeding $200,000. H&r block free tax file 2012 Special Rules Sale-leaseback. H&r block free tax file 2012   If you sold qualified property you placed in service after December 31, 2007, and leased it back within 3 months after you originally placed in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. H&r block free tax file 2012   The property will not qualify for the special depreciation allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before January 1, 2008. H&r block free tax file 2012 Syndicated leasing transactions. H&r block free tax file 2012   If qualified property is originally placed in service by a lessor after December 31, 2007, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. H&r block free tax file 2012   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of the last sale if the property is sold within 3 months after the final unit is placed in service and the period between the time the first and last units are placed in service does not exceed 12 months. H&r block free tax file 2012 Excepted Property Qualified property does not include any of the following. H&r block free tax file 2012 Property placed in service and disposed of in the same tax year. H&r block free tax file 2012 Property converted from business use to personal use in the same tax year acquired. H&r block free tax file 2012 Property converted from personal use to business use in the same or later tax year may be qualified property. H&r block free tax file 2012 Property required to be depreciated under the Alternative Depreciation System (ADS). H&r block free tax file 2012 This includes listed property used 50% or less in a qualified business use. H&r block free tax file 2012 For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . H&r block free tax file 2012 Qualified restaurant property (as defined in section 168(e)(7) of the Internal Revenue Code). H&r block free tax file 2012 Qualified retail improvement property (as defined in section 168(e)(8) of the Internal Revenue Code). H&r block free tax file 2012 Property for which you elected not to claim any special depreciation allowance (discussed later). H&r block free tax file 2012 Property for which you elected to accelerate certain credits in lieu of the special depreciation allowance (discussed next). H&r block free tax file 2012 Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance An election made by a corporation to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, continues to apply to round 2 extension property (as defined in section 168(k)(4)(I)(iv)), unless the corporation made an election not to apply the section 168(k)(4) election to round 2 extension property for its first tax year ending after December 31, 2010. H&r block free tax file 2012 For 2013, round 2 extension property generally is long production period and noncommercial aircraft if acquired after March 31, 2008, and placed in service after December 31, 2012, but before January 1, 2014. H&r block free tax file 2012 An election made by a corporation to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, continues to apply to round 3 extension property (as defined in section 168(k)(4)(J)(iv)), unless the corporation makes an election not to apply the section 168(k)(4) election to round 3 extension property. H&r block free tax file 2012 If a corporation did not make a section 168(k)(4) election for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, the corporation may elect for its first tax year ending after December 31, 2012, to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for only round 3 extension property. H&r block free tax file 2012 If you make an election to accelerate these credits in lieu of claiming the special depreciation allowance for eligible property, you must not take the 50% special depreciation allowance for the property and must depreciate the basis in the property under MACRS using the straight line method. H&r block free tax file 2012 See Which Depreciation Method Applies in chapter 4 . H&r block free tax file 2012 Once made, the election cannot be revoked without IRS consent. H&r block free tax file 2012 Additional guidance. H&r block free tax file 2012   For additional guidance on the election to accelerate the research or minimum tax credit in lieu of claiming the special depreciation allowance, see Rev. H&r block free tax file 2012 Proc. H&r block free tax file 2012 2008-65 on page 1082 of Internal Revenue Bulletin 2008-44, available at www. H&r block free tax file 2012 irs. H&r block free tax file 2012 gov/pub/irs-irbs/irb08-44. H&r block free tax file 2012 pdf, Rev. H&r block free tax file 2012 Proc. H&r block free tax file 2012 2009-16 on page 449 of Internal Revenue Bulletin 2009-06, available at www. H&r block free tax file 2012 irs. H&r block free tax file 2012 gov/pub/irs-irbs/irb09-06. H&r block free tax file 2012 pdf, and Rev. H&r block free tax file 2012 Proc. H&r block free tax file 2012 2009-33 on page 150 of Internal Revenue Bulletin 2009-29, available at www. H&r block free tax file 2012 irs. H&r block free tax file 2012 gov/pub/irs-irbs/irb09-29. H&r block free tax file 2012 pdf. H&r block free tax file 2012 Also, see Form 3800, General Business Credit; Form 8827, Credit for Prior Year Minimum Tax — Corporations; and related instructions. H&r block free tax file 2012   Additional guidance regarding the election to accelerate the minimum tax credit in lieu of claiming the special depreciation allowance for round 2 extension property and round 3 extension property may also be available in later Internal Revenue Bulletins available at www. H&r block free tax file 2012 irs. H&r block free tax file 2012 gov/irb. H&r block free tax file 2012 How Much Can You Deduct? Figure the special depreciation allowance by multiplying the depreciable basis of qualified reuse and recycling property, qualified cellulosic biofuel plant property, qualified disaster assistance property, and certain qualified property acquired after December 31, 2007, by 50%. H&r block free tax file 2012 For qualified property other than listed property, enter the special allowance on line 14 in Part II of Form 4562. H&r block free tax file 2012 For qualified property that is listed property, enter the special allowance on line 25 in Part V of Form 4562. H&r block free tax file 2012 If you place qualified property in service in a short tax year, you can take the full amount of a special depreciation allowance. H&r block free tax file 2012 Depreciable basis. H&r block free tax file 2012   This is the property's cost or other basis multiplied by the percentage of business/investment use, reduced by the total amount of any credits and deductions allocable to the property. H&r block free tax file 2012   The following are examples of some credits and deductions that reduce depreciable basis. H&r block free tax file 2012 Any section 179 deduction. H&r block free tax file 2012 Any deduction for removal of barriers to the disabled and the elderly. H&r block free tax file 2012 Any disabled access credit, enhanced oil recovery credit, and credit for employer-provided childcare facilities and services. H&r block free tax file 2012 Basis adjustment to investment credit property under section 50(c) of the Internal Revenue Code. H&r block free tax file 2012   For additional credits and deductions that affect basis, see section 1016 of the Internal Revenue Code. H&r block free tax file 2012   For information about how to determine the cost or other basis of property, see What Is the Basis of Your Depreciable Property in chapter 1 . H&r block free tax file 2012 For a discussion of business/investment use, see Partial business or investment use under Property Used in Your Business or Income-Producing Activity in chapter 1 . H&r block free tax file 2012 Depreciating the remaining cost. H&r block free tax file 2012   After you figure your special depreciation allowance for your qualified property, you can use the remaining cost to figure your regular MACRS depreciation deduction (discussed in chapter 4 . H&r block free tax file 2012 Therefore, you must reduce the depreciable basis of the property by the special depreciation allowance before figuring your regular MACRS depreciation deduction. H&r block free tax file 2012 Example. H&r block free tax file 2012 On November 1, 2013, Tom Brown bought and placed in service in his business qualified property that cost $450,000. H&r block free tax file 2012 He did not elect to claim a section 179 deduction. H&r block free tax file 2012 He deducts 50% of the cost ($225,000) as a special depreciation allowance for 2013. H&r block free tax file 2012 He uses the remaining $225,000 of cost to figure his regular MACRS depreciation deduction for 2013 and later years. H&r block free tax file 2012 Like-kind exchanges and involuntary conversions. H&r block free tax file 2012   If you acquire qualified property in a like-kind exchange or involuntary conversion, the carryover basis of the acquired property is eligible for a special depreciation allowance. H&r block free tax file 2012 After you figure your special allowance, you can use the remaining carryover basis to figure your regular MACRS depreciation deduction. H&r block free tax file 2012 In the year you claim the allowance (the year you place in service the property received in the exchange or dispose of involuntarily converted property), you must reduce the carryover basis of the property by the allowance before figuring your regular MACRS depreciation deduction. H&r block free tax file 2012 See Figuring the Deduction for Property Acquired in a Nontaxable Exchange , in chapter 4 under How Is the Depreciation Deduction Figured . H&r block free tax file 2012 The excess basis (the part of the acquired property's basis that exceeds its carryover basis) is also eligible for a special depreciation allowance. H&r block free tax file 2012 How Can You Elect Not To Claim an Allowance? You can elect, for any class of property, not to deduct any special allowances for all property in such class placed in service during the tax year. H&r block free tax file 2012 To make an election, attach a statement to your return indicating what election you are making and the class of property for which you are making the election. H&r block free tax file 2012 When to make election. H&r block free tax file 2012   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. H&r block free tax file 2012   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). H&r block free tax file 2012 Attach the election statement to the amended return. H&r block free tax file 2012 On the amended return, write “Filed pursuant to section 301. H&r block free tax file 2012 9100-2. H&r block free tax file 2012 ” Revoking an election. H&r block free tax file 2012   Once you elect not to deduct a special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. H&r block free tax file 2012 A request to revoke the election is a request for a letter ruling. H&r block free tax file 2012 If you elect not to have any special allowance apply, the property may be subject to an alternative minimum tax adjustment for depreciation. H&r block free tax file 2012 When Must You Recapture an Allowance? When you dispose of property for which you claimed a special depreciation allowance, any gain on the disposition is generally recaptured (included in income) as ordinary income up to the amount of the special depreciation allowance previously allowed or allowable. H&r block free tax file 2012 See When Do You Recapture MACRS Depreciation in chapter 4 or more information. H&r block free tax file 2012 Recapture of allowance deducted for qualified GO Zone property. H&r block free tax file 2012   If, in any year after the year you claim the special depreciation allowance for qualified GO Zone property (including specified GO Zone extension property), the property ceases to be used in the GO Zone, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. H&r block free tax file 2012 For additional guidance, see Notice 2008-25 on page 484 of Internal Revenue Bulletin 2008-9. H&r block free tax file 2012 Qualified cellulosic biomass ethanol plant property and qualified cellulosic biofuel plant property. H&r block free tax file 2012   If, in any year after the year you claim the special depreciation allowance for any qualified cellulosic biomass ethanol plant property or qualified biofuel plant property, the property ceases to be qualified cellulosic biomass ethanol plant property or qualified biofuel plant property, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. H&r block free tax file 2012 Recapture of allowance for qualified Recovery Assistance property. H&r block free tax file 2012   If, in any year after the year you claim the special depreciation allowance for qualified Recovery Assistance property, the property ceases to be used in the Kansas disaster area, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. H&r block free tax file 2012 For additional guidance, see Notice 2008-67 on page 307 of Internal Revenue Bulletin 2008-32. H&r block free tax file 2012 Recapture of allowance for qualified disaster assistance property. H&r block free tax file 2012   If, in any year after the year you claim the special depreciation allowance for qualified disaster assistance property, the property ceases to be used in the applicable disaster area, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. H&r block free tax file 2012   For additional guidance, see Notice 2008-67 on page 307 of Internal Revenue Bulletin 2008-32. H&r block free tax file 2012 Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

SOI Tax Stats - Exempt Organizations' Unrelated Business Income (UBI) Tax Statistics

Return to Tax Stats home page

Snapshot of Unrelated Business Income Tax Statistics

Because tax-exempt organizations generally operate for charitable or other beneficial purposes, most income that they receive is exempt from tax under the Internal Revenue Code. Tax-exempt organizations are permitted to engage in income-producing activities that are considered to be unrelated to their exempt purposes. However, income from these activities may be taxable. This study measures income, deductions, and tax imposed on tax-exempt corporate and trust entities' unrelated business income. Data are compiled from Form 990-T, Exempt Organization Business Income Tax Return.

Statistical Tables    Publications and Papers    Other IRS Data
 

For information about selected terms and concepts, a description of the data sources and limitations, and links to recent revisions of Form 990-T, please visit the Exempt Organizations' Unrelated Business Income (UBI) Tax Metadata page.


Statistical Tables

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

All Organizations:
Number of Returns, Gross UBI, Total Deductions, and Tax Items
 
Classified by: Internal Revenue Code Section
Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1995  1994  1993  1992
 
Classified by: Size of Gross UBI
Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1995  1994  1993  1992
 
Classified by: Size of Unrelated Business Taxable Income or Deficit
Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1995  1994  1993  1992
 
Classified by: Primary Unrelated Business Activity or Industrial Grouping
Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1995  1994  1993  1992
 
Sources of Gross UBI
Classified by: Size of Gross UBI
Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1995  1994  1993  1992
 
Types of Deductions
Classified by: Size of Gross UBI
Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1995  1994  1993  1992

 
Organizations with Positive Unrelated Business Taxable Income:
Number of Returns, Gross UBI, Total Deductions, and Tax Items
Classified by: Type of Entity and Size of Gross UBI
Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1995  1994  1993  1992

 
Section 501(c)(3) Organizations Only:
Classified by: Primary Unrelated Business Activity or Industrial Grouping
Tax Years: 2009  2008  2007  2006

 
Historical Table:
Table 16: Nonprofit Charitable Organization and Domestic Private Foundation Information Returns, and Exempt Organization Business Income Tax Returns: Selected Financial Data, Expanded
Published as: SOI Bulletin Historical Table 16


Projections
For selected tax returns, including the Form 990-T, 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

(Back to top)

Publications and Papers

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

(Back to top)

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.

(Back to top)

Return to Tax Stats home page

Page Last Reviewed or Updated: 27-Feb-2014

The H&r Block Free Tax File 2012

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