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H&r free tax Publication 547 - Main Content Table of Contents CasualtyFamily pet. H&r free tax Progressive deterioration. H&r free tax Special Procedure for Damage From Corrosive Drywall Theft Loss on Deposits Proof of Loss Figuring a LossGain from reimbursement. H&r free tax Business or income-producing property. H&r free tax Loss of inventory. H&r free tax Leased property. H&r free tax Exception for personal-use real property. H&r free tax Decrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Deduction Limits2% Rule $100 Rule 10% Rule Figuring the Deduction Figuring a GainPostponement of Gain When To Report Gains and LossesLoss on deposits. H&r free tax Lessee's loss. H&r free tax Disaster Area LossesDisaster loss to inventory. H&r free tax Main home in disaster area. H&r free tax Unsafe home. H&r free tax Time limit for making choice. H&r free tax Revoking your choice. H&r free tax Figuring the loss deduction. H&r free tax How to report the loss on Form 1040X. H&r free tax Records. H&r free tax Need a copy of your tax return for the preceding year? Postponed Tax Deadlines Contacting the Federal Emergency Management Agency (FEMA) How To Report Gains and LossesProperty held 1 year or less. H&r free tax Property held more than 1 year. H&r free tax Depreciable property. H&r free tax Adjustments to Basis If Deductions Are More Than Income How To Get Tax HelpLow Income Taxpayer Clinics Casualty A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. H&r free tax A sudden event is one that is swift, not gradual or progressive. H&r free tax An unexpected event is one that is ordinarily unanticipated and unintended. H&r free tax 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 free tax Generally, casualty losses are deductible during the taxable year that the loss occurred. H&r free tax See Table 3, later. H&r free tax Deductible losses. H&r free tax   Deductible casualty losses can result from a number of different causes, including the following. H&r free tax Car accidents (but see Nondeductible losses , next, for exceptions). H&r free tax Earthquakes. H&r free tax Fires (but see Nondeductible losses , next, for exceptions). H&r free tax Floods. H&r free tax Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses , later. H&r free tax Mine cave-ins. H&r free tax Shipwrecks. H&r free tax Sonic booms. H&r free tax Storms, including hurricanes and tornadoes. H&r free tax Terrorist attacks. H&r free tax Vandalism. H&r free tax Volcanic eruptions. H&r free tax Nondeductible losses. H&r free tax   A casualty loss is not deductible if the damage or destruction is caused by the following. H&r free tax Accidentally breaking articles such as glassware or china under normal conditions. H&r free tax A family pet (explained below). H&r free tax A fire if you willfully set it, or pay someone else to set it. H&r free tax A car accident if your willful negligence or willful act caused it. H&r free tax The same is true if the willful act or willful negligence of someone acting for you caused the accident. H&r free tax Progressive deterioration (explained below). H&r free tax However, see Special Procedure for Damage From Corrosive Drywall , later. H&r free tax Family pet. H&r free tax   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 free tax Example. H&r free tax Your antique oriental rug was damaged by your new puppy before it was housebroken. H&r free tax Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss. H&r free tax Progressive deterioration. H&r free tax   Loss of property due to progressive deterioration is not deductible as a casualty loss. H&r free tax This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. H&r free tax The following are examples of damage due to progressive deterioration. H&r free tax The steady weakening of a building due to normal wind and weather conditions. H&r free tax The deterioration and damage to a water heater that bursts. H&r free tax 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 free tax Most losses of property caused by droughts. H&r free tax 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 free tax Termite or moth damage. H&r free tax The damage or destruction of trees, shrubs, or other plants by a fungus, disease, insects, worms, or similar pests. H&r free tax However, a sudden destruction due to an unexpected or unusual infestation of beetles or other insects may result in a casualty loss. H&r free tax Special Procedure for Damage From Corrosive Drywall Under a special procedure, you can deduct the amounts you paid to repair damage to your home and household appliances due to corrosive drywall. H&r free tax Under this procedure, you treat the amounts paid for repairs as a casualty loss in the year of payment. H&r free tax For example, amounts you paid for repairs in 2013 are deductible on your 2013 tax return and amounts you paid for repairs in 2012 are deductible on your 2012 tax return. H&r free tax Note. H&r free tax If you paid for any repairs before 2013 and you choose to follow this special procedure, you can amend your return for the earlier year by filing Form 1040X, Amended U. H&r free tax S. H&r free tax Individual Income Tax Return, and attaching a completed Form 4684 for the appropriate year. H&r free tax Form 4684 for the appropriate year can be found at IRS. H&r free tax gov. H&r free tax Generally, Form 1040X must be filed within 3 years after the date the original return was filed or within 2 years after the date the tax was paid, whichever is later. H&r free tax Corrosive drywall. H&r free tax   For purposes of this special procedure, “corrosive drywall” means drywall that is identified as problem drywall under the two-step identification method published by the Consumer Product Safety Commission (CPSC) and the Department of Housing and Urban Development (HUD) in their interim guidance dated January 28, 2010, as revised by the CPSC and HUD. H&r free tax The revised identification guidance and remediation guidelines are available at www. H&r free tax cpsc. H&r free tax gov/Safety-Education/Safety-Education-Centers/Drywall. H&r free tax Special instructions for completing Form 4684. H&r free tax   If you choose to follow this special procedure, complete Form 4684, Section A, according to the instructions below. H&r free tax The IRS will not challenge your treatment of damage resulting from corrosive drywall as a casualty loss if you determine and report the loss as explained below. H&r free tax Top margin of Form 4684. H&r free tax   Enter “Revenue Procedure 2010-36”. H&r free tax Line 1. H&r free tax   Enter the information required by the line 1 instructions. H&r free tax Line 2. H&r free tax   Skip this line. H&r free tax Line 3. H&r free tax   Enter the amount of insurance or other reimbursements you received (including through litigation). H&r free tax If none, enter -0-. H&r free tax Lines 4–7. H&r free tax   Skip these lines. H&r free tax Line 8. H&r free tax   Enter the amount you paid to repair the damage to your home and household appliances due to corrosive drywall. H&r free tax Enter only the amounts you paid to restore your home to the condition existing immediately before the damage. H&r free tax Do not enter any amounts you paid for improvements or additions that increased the value of your home above its pre-loss value. H&r free tax If you replaced a household appliance instead of repairing it, enter the lesser of: The current cost to replace the original appliance, or The basis of the original appliance (generally its cost). H&r free tax Line 9. H&r free tax   If line 8 is more than line 3, do one of the following. H&r free tax If you have a pending claim for reimbursement (or you intend to pursue reimbursement), enter 75% of the difference between lines 3 and 8. H&r free tax If item (1) does not apply to you, enter the full amount of the difference between lines 3 and 8. H&r free tax If line 8 is less than or equal to line 3, you cannot claim a casualty loss deduction using this special procedure. H&r free tax    If you have a pending claim for reimbursement (or you intend to pursue reimbursement), you may have income or an additional deduction in a later tax year depending on the actual amount of reimbursement received. H&r free tax See Reimbursement Received After Deducting Loss, later. H&r free tax Lines 10–18. H&r free tax   Complete these lines according to the Instructions for Form 4684. H&r free tax Choosing not to follow this special procedure. H&r free tax   If you choose not to follow this special procedure, you are subject to all of the provisions that apply to the deductibility of casualty losses, and you must complete lines 1–9 according to the Instructions for Form 4684. H&r free tax This means, for example, that you must establish that the damage, destruction, or loss of property resulted from an identifiable event as defined earlier under Casualty . H&r free tax Furthermore, you must have proof that shows the following. H&r free tax The loss is properly deductible in the tax year you claimed it and not in some other year. H&r free tax See When To Report Gains and Losses , later. H&r free tax The amount of the claimed loss. H&r free tax See Proof of Loss , later. H&r free tax No claim for reimbursement of any portion of the loss exists for which there is a reasonable prospect of recovery. H&r free tax See When To Report Gains and Losses , later. H&r free tax Theft A theft is the taking and removing of money or property with the intent to deprive the owner of it. H&r free tax The taking of property must be illegal under the law of the state where it occurred and it must have been done with criminal intent. H&r free tax You do not need to show a conviction for theft. H&r free tax Theft includes the taking of money or property by the following means. H&r free tax Blackmail. H&r free tax Burglary. H&r free tax Embezzlement. H&r free tax Extortion. H&r free tax Kidnapping for ransom. H&r free tax Larceny. H&r free tax Robbery. H&r free tax The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. H&r free tax Decline in market value of stock. H&r free tax   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 free tax 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 free tax You report a capital loss on Schedule D (Form 1040). H&r free tax For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. H&r free tax Mislaid or lost property. H&r free tax    The simple disappearance of money or property is not a theft. H&r free tax 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 free tax Sudden, unexpected, and unusual events were defined earlier under Casualty . H&r free tax Example. H&r free tax A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. H&r free tax The diamond falls from the ring and is never found. H&r free tax The loss of the diamond is a casualty. H&r free tax Losses from Ponzi-type investment schemes. H&r free tax   The IRS has issued the following guidance to assist taxpayers who are victims of losses from Ponzi-type investment schemes: Revenue Ruling 2009-9, 2009-14 I. H&r free tax R. H&r free tax B. H&r free tax 735 (available at www. H&r free tax irs. H&r free tax gov/irb/2009-14_IRB/ar07. H&r free tax html). H&r free tax Revenue Procedure 2009-20, 2009-14 I. H&r free tax R. H&r free tax B. H&r free tax 749 (available at www. H&r free tax irs. H&r free tax gov/irb/2009-14_IRB/ar11. H&r free tax html). H&r free tax Revenue Procedure 2011-58, 2011-50 I. H&r free tax R. H&r free tax B. H&r free tax 847 (available at www. H&r free tax irs. H&r free tax gov/irb/2011-50_IRB/ar11. H&r free tax html). H&r free tax 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 free tax Skip lines 19 to 27, but you must fill out Section B, lines 29 to 39, as appropriate. H&r free tax Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. H&r free tax You do not need to complete Appendix A. H&r free tax For more information, see the above revenue ruling and revenue procedures, and the Instructions for Form 4684. H&r free tax   If you choose not to use the procedures in Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate. H&r free tax Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. H&r free tax If you incurred this type of loss, you can choose one of the following ways to deduct the loss. H&r free tax As a casualty loss. H&r free tax As an ordinary loss. H&r free tax As a nonbusiness bad debt. H&r free tax Casualty loss or ordinary loss. H&r free tax   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 free tax The choice generally is made on the return you file for that year and applies to all your losses on deposits for the year in that particular financial institution. H&r free tax 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 free tax 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 free tax Once you make the choice, you cannot change it without permission from the Internal Revenue Service. H&r free tax   If you claim an ordinary loss, report it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. H&r free tax 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 free tax Your loss is subject to the 2%-of-adjusted-gross-income limit. H&r free tax You cannot choose to claim an ordinary loss if any part of the deposit is federally insured. H&r free tax Nonbusiness bad debt. H&r free tax   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 free tax How to report. H&r free tax   The kind of deduction you choose for your loss on deposits determines how you report your loss. H&r free tax See Table 1. H&r free tax More information. H&r free tax   For more information, see Special Treatment for Losses on Deposits in Insolvent or Bankrupt Financial Institutions in the Instructions for Form 4684. H&r free tax Deducted loss recovered. H&r free tax   If you recover an amount you deducted as a loss in an earlier year, you may have to include the amount recovered in your income for the year of recovery. H&r free tax If any part of the original deduction did not reduce your tax in the earlier year, you do not have to include that part of the recovery in your income. H&r free tax For more information, see Recoveries in Publication 525. H&r free tax Proof of Loss To deduct a casualty or theft loss, you must be able to show that there was a casualty or theft. H&r free tax You also must be able to support the amount you take as a deduction. H&r free tax Casualty loss proof. H&r free tax   For a casualty loss, you should be able to show all of the following. H&r free tax The type of casualty (car accident, fire, storm, etc. H&r free tax ) and when it occurred. H&r free tax That the loss was a direct result of the casualty. H&r free tax 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 free tax Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. H&r free tax Theft loss proof. H&r free tax   For a theft loss, you should be able to show all of the following. H&r free tax When you discovered that your property was missing. H&r free tax That your property was stolen. H&r free tax That you were the owner of the property. H&r free tax Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. H&r free tax    It is important that you have records that will prove your deduction. H&r free tax If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. H&r free tax Figuring a Loss To determine your deduction for a casualty or theft loss, you must first figure your loss. H&r free tax Table 1. H&r free tax Reporting Loss on Deposits IF you choose to report the loss as a(n). H&r free tax . H&r free tax . H&r free tax   THEN report it on. H&r free tax . H&r free tax . H&r free tax casualty loss   Form 4684 and Schedule A  (Form 1040). H&r free tax ordinary loss   Schedule A (Form 1040). H&r free tax nonbusiness bad debt   Form 8949 and Schedule D (Form 1040). H&r free tax Amount of loss. H&r free tax   Figure the amount of your loss using the following steps. H&r free tax Determine your adjusted basis in the property before the casualty or theft. H&r free tax Determine the decrease in fair market value (FMV) of the property as a result of the casualty or theft. H&r free tax 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 free tax 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 free tax Gain from reimbursement. H&r free tax   If your reimbursement is more than your adjusted basis in the property, you have a gain. H&r free tax This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. H&r free tax 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 free tax See Figuring a Gain , later. H&r free tax Business or income-producing property. H&r free tax   If you have business or income-producing property, such as rental property, and it is stolen or completely destroyed, the decrease in FMV is not considered. H&r free tax Your loss is figured as follows:   Your adjusted basis in the property     MINUS     Any salvage value     MINUS     Any insurance or other reimbursement you  receive or expect to receive   Loss of inventory. H&r free tax   There are two ways you can deduct a casualty or theft loss of inventory, including items you hold for sale to customers. H&r free tax   One way is to deduct the loss through the increase in the cost of goods sold by properly reporting your opening and closing inventories. H&r free tax Do not claim this loss again as a casualty or theft loss. H&r free tax If you take the loss through the increase in the cost of goods sold, include any insurance or other reimbursement you receive for the loss in gross income. H&r free tax   The other way is to deduct the loss separately. H&r free tax If you deduct it separately, eliminate the affected inventory items from the cost of goods sold by making a downward adjustment to opening inventory or purchases. H&r free tax Reduce the loss by the reimbursement you received. H&r free tax Do not include the reimbursement in gross income. H&r free tax If you do not receive the reimbursement by the end of the year, you may not claim a loss to the extent you have a reasonable prospect of recovery. H&r free tax Leased property. H&r free tax   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 free tax Separate computations. H&r free tax   Generally, if a single casualty or theft involves more than one item of property, you must figure the loss on each item separately. H&r free tax Then combine the losses to determine the total loss from that casualty or theft. H&r free tax Exception for personal-use real property. H&r free tax   In figuring a casualty loss on personal-use real property, the entire property (including any improvements, such as buildings, trees, and shrubs) is treated as one item. H&r free tax Figure the loss using the smaller of the following. H&r free tax The decrease in FMV of the entire property. H&r free tax The adjusted basis of the entire property. H&r free tax   See Real property under Figuring the Deduction, later. H&r free tax 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 free tax 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 free tax FMV of stolen property. H&r free tax   The FMV of property immediately after a theft is considered to be zero because you no longer have the property. H&r free tax Example. H&r free tax Several years ago, you purchased silver dollars at face value for $150. H&r free tax This is your adjusted basis in the property. H&r free tax Your silver dollars were stolen this year. H&r free tax The FMV of the coins was $1,000 just before they were stolen, and insurance did not cover them. H&r free tax Your theft loss is $150. H&r free tax Recovered stolen property. H&r free tax   Recovered stolen property is your property that was stolen and later returned to you. H&r free tax 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 free tax Use this amount to refigure your total loss for the year in which the loss was deducted. H&r free tax   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 free tax But report the difference only up to the amount of the loss that reduced your tax. H&r free tax For more information on the amount to report, see Recoveries in Publication 525. H&r free tax 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 free tax However, other measures also can be used to establish certain decreases. H&r free tax See Appraisal and Cost of cleaning up or making repairs , next. H&r free tax Appraisal. H&r free tax   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterwards should be made by a competent appraiser. H&r free tax The appraiser must recognize the effects of any general market decline that may occur along with the casualty. H&r free tax This information is needed to limit any deduction to the actual loss resulting from damage to the property. H&r free tax   Several factors are important in evaluating the accuracy of an appraisal, including the following. H&r free tax The appraiser's familiarity with your property before and after the casualty or theft. H&r free tax The appraiser's knowledge of sales of comparable property in the area. H&r free tax The appraiser's knowledge of conditions in the area of the casualty. H&r free tax The appraiser's method of appraisal. H&r free tax 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 free tax For more information on disasters, see Disaster Area Losses, later. H&r free tax Cost of cleaning up or making repairs. H&r free tax   The cost of repairing damaged property is not part of a casualty loss. H&r free tax Neither is the cost of cleaning up after a casualty. H&r free tax But you can use the cost of cleaning up or of making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. H&r free tax The repairs are actually made. H&r free tax The repairs are necessary to bring the property back to its condition before the casualty. H&r free tax The amount spent for repairs is not excessive. H&r free tax The repairs take care of the damage only. H&r free tax 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 free tax Landscaping. H&r free tax   The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. H&r free tax You may be able to measure your loss by what you spend on the following. H&r free tax Removing destroyed or damaged trees and shrubs, minus any salvage you receive. H&r free tax Pruning and other measures taken to preserve damaged trees and shrubs. H&r free tax Replanting necessary to restore the property to its approximate value before the casualty. H&r free tax Car value. H&r free tax   Books issued by various automobile organizations that list your car may be useful in figuring the value of your car. H&r free tax You can use the books' retail values and modify them by factors such as the mileage and condition of your car to figure its value. H&r free tax 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 free tax If your car is not listed in the books, determine its value from other sources. H&r free tax 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 free tax 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 free tax Cost of protection. H&r free tax   The cost of protecting your property against a casualty or theft is not part of a casualty or theft loss. H&r free tax The amount you spend on insurance or to board up your house against a storm is not part of your loss. H&r free tax If the property is business property, these expenses are deductible as business expenses. H&r free tax   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 free tax An example would be the cost of a dike to prevent flooding. H&r free tax Exception. H&r free tax   You cannot increase your basis in the property by, or deduct as a business expense, any expenditures you made with respect to qualified disaster mitigation payments (discussed later under Disaster Area Losses ). H&r free tax Related expenses. H&r free tax   The incidental expenses due to a casualty or theft, such as expenses for the treatment of personal injuries, for temporary housing, or for a rental car, are not part of your casualty or theft loss. H&r free tax However, they may be deductible as business expenses if the damaged or stolen property is business property. H&r free tax Replacement cost. H&r free tax   The cost of replacing stolen or destroyed property is not part of a casualty or theft loss. H&r free tax Example. H&r free tax You bought a new chair 4 years ago for $300. H&r free tax In April, a fire destroyed the chair. H&r free tax You estimate that it would cost $500 to replace it. H&r free tax If you had sold the chair before the fire, you estimate that you could have received only $100 for it because it was 4 years old. H&r free tax The chair was not insured. H&r free tax Your loss is $100, the FMV of the chair before the fire. H&r free tax It is not $500, the replacement cost. H&r free tax Sentimental value. H&r free tax   Do not consider sentimental value when determining your loss. H&r free tax 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 free tax Decline in market value of property in or near casualty area. H&r free tax   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 free tax You have a loss only for actual casualty damage to your property. H&r free tax However, if your home is in a federally declared disaster area, see Disaster Area Losses , later. H&r free tax Costs of photographs and appraisals. H&r free tax   Photographs taken after a casualty will be helpful in establishing the condition and value of the property after it was damaged. H&r free tax Photographs showing the condition of the property after it was repaired, restored, or replaced may also be helpful. H&r free tax   Appraisals are used to figure the decrease in FMV because of a casualty or theft. H&r free tax See Appraisal , earlier, under Figuring Decrease in FMV — Items To Consider, for information about appraisals. H&r free tax   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 free tax They are expenses in determining your tax liability. H&r free tax 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 free tax Adjusted Basis The measure of your investment in the property you own is its basis. H&r free tax For property you buy, your basis is usually its cost to you. H&r free tax For property you acquire in some other way, such as inheriting it, receiving it as a gift, or getting it in a nontaxable exchange, you must figure your basis in another way, as explained in Publication 551. H&r free tax If you inherited the property from someone who died in 2010 and the executor of the decedent's estate made the election to file Form 8939, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. H&r free tax Adjustments to basis. H&r free tax    While you own the property, various events may take place that change your basis. H&r free tax Some events, such as additions or permanent improvements to the property, increase basis. H&r free tax Others, such as earlier casualty losses and depreciation deductions, decrease basis. H&r free tax When you add the increases to the basis and subtract the decreases from the basis, the result is your adjusted basis. H&r free tax See Publication 551 for more information on figuring the basis of your property. H&r free tax Insurance and Other Reimbursements If you receive an insurance or other type of reimbursement, you must subtract the reimbursement when you figure your loss. H&r free tax You do not have a casualty or theft loss to the extent you are reimbursed. H&r free tax 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 free tax You must reduce your loss even if you do not receive payment until a later tax year. H&r free tax See Reimbursement Received After Deducting Loss , later. H&r free tax Failure to file a claim for reimbursement. H&r free tax   If your property is covered by insurance, you must file a timely insurance claim for reimbursement of your loss. H&r free tax Otherwise, you cannot deduct this loss as a casualty or theft. H&r free tax The portion of the loss usually not covered by insurance (for example, a deductible) is not subject to this rule. H&r free tax Example. H&r free tax You have a car insurance policy with a $1,000 deductible. H&r free tax Because your insurance did not cover the first $1,000 of an auto collision, the $1,000 would be deductible (subject to the $100 and 10% rules, discussed later). H&r free tax 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 free tax Types of Reimbursements The most common type of reimbursement is an insurance payment for your stolen or damaged property. H&r free tax Other types of reimbursements are discussed next. H&r free tax Also see the Instructions for Form 4684. H&r free tax Employer's emergency disaster fund. H&r free tax   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 free tax Take into consideration only the amount you used to replace your destroyed or damaged property. H&r free tax Example. H&r free tax Your home was extensively damaged by a tornado. H&r free tax Your loss after reimbursement from your insurance company was $10,000. H&r free tax Your employer set up a disaster relief fund for its employees. H&r free tax Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. H&r free tax You received $4,000 from the fund and spent the entire amount on repairs to your home. H&r free tax 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 free tax Your casualty loss before applying the deduction limits (discussed later) is $6,000. H&r free tax Cash gifts. H&r free tax   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 free tax This applies even if you use the money to pay for repairs to property damaged in the disaster. H&r free tax Example. H&r free tax Your home was damaged by a hurricane. H&r free tax Relatives and neighbors made cash gifts to you that were excludable from your income. H&r free tax You used part of the cash gifts to pay for repairs to your home. H&r free tax There were no limits or restrictions on how you could use the cash gifts. H&r free tax It was an excludable gift, so the money you received and used to pay for repairs to your home does not reduce your casualty loss on the damaged home. H&r free tax Insurance payments for living expenses. H&r free tax   You do not reduce your casualty loss by insurance payments you receive to cover living expenses in either of the following situations. H&r free tax You lose the use of your main home because of a casualty. H&r free tax Government authorities do not allow you access to your main home because of a casualty or threat of one. H&r free tax Inclusion in income. H&r free tax   If these insurance payments are more than the temporary increase in your living expenses, you must include the excess in your income. H&r free tax Report this amount on Form 1040, line 21. H&r free tax However, if the casualty occurs in a federally declared disaster area, none of the insurance payments are taxable. H&r free tax See Qualified disaster relief payments , later, under Disaster Area Losses. H&r free tax   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 free tax Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. H&r free tax Generally, these expenses include the amounts you pay for the following. H&r free tax Renting suitable housing. H&r free tax Transportation. H&r free tax Food. H&r free tax Utilities. H&r free tax Miscellaneous services. H&r free tax 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 free tax Example. H&r free tax As a result of a fire, you vacated your apartment for a month and moved to a motel. H&r free tax You normally pay $525 a month for rent. H&r free tax None was charged for the month the apartment was vacated. H&r free tax Your motel rent for this month was $1,200. H&r free tax You normally pay $200 a month for food. H&r free tax Your food expenses for the month you lived in the motel were $400. H&r free tax You received $1,100 from your insurance company to cover your living expenses. H&r free tax You determine the payment you must include in income as follows. H&r free tax 1. H&r free tax Insurance payment for living expenses $1,100 2. H&r free tax Actual expenses during the month you are unable to use your home because of the fire $1,600   3. H&r free tax Normal living expenses 725   4. H&r free tax Temporary increase in living expenses: Subtract line 3  from line 2 875 5. H&r free tax Amount of payment includible in income: Subtract line 4 from line 1 $ 225 Tax year of inclusion. H&r free tax   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 free tax Example. H&r free tax Your main home was destroyed by a tornado in August 2011. H&r free tax You regained use of your home in November 2012. H&r free tax 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 free tax You include this amount in income on your 2012 Form 1040. H&r free tax 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 free tax Disaster relief. H&r free tax   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 free tax Table 2. H&r free tax Deduction Limit Rules for Personal-Use and Employee Property       $100 Rule 10% Rule 2% Rule General Application You must reduce each casualty or theft loss by $100 when figuring your deduction. H&r free tax Apply this rule to personal-use property after you have figured the amount of your loss. H&r free tax You must reduce your total casualty or theft loss by 10% of your adjusted gross income. H&r free tax Apply this rule to personal-use property after you reduce each loss by $100 (the $100 rule). H&r free tax You must reduce your total casualty or theft loss by 2% of your adjusted gross income. H&r free tax Apply this rule to property you used in performing services as an employee after you have figured the amount of your loss and added it to your job expenses and most other miscellaneous itemized deductions. H&r free tax Single Event Apply this rule only once, even if many pieces of property are affected. H&r free tax Apply this rule only once, even if many pieces of property are affected. H&r free tax Apply this rule only once, even if many pieces of property are affected. H&r free tax More Than One Event Apply to the loss from each event. H&r free tax Apply to the total of all your losses from all events. H&r free tax Apply to the total of all your losses from all events. H&r free tax More Than One Person— With Loss From the   Same Event  (other than a married couple  filing jointly) Apply separately to each person. H&r free tax Apply separately to each person. H&r free tax Apply separately to each person. H&r free tax Married Couple—  With Loss From the  Same Event Filing Joint Return Apply as if you were one person. H&r free tax Apply as if you were one person. H&r free tax Apply as if you were one person. H&r free tax Filing Separate Return Apply separately to each spouse. H&r free tax Apply separately to each spouse. H&r free tax Apply separately to each spouse. H&r free tax More Than One Owner (other than a married couple filing jointly) Apply separately to each owner of jointly owned property. H&r free tax Apply separately to each owner of jointly owned property. H&r free tax Apply separately to each owner of jointly owned property. H&r free tax    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 free tax For more information, see Qualified disaster relief payments under Disaster Area Losses, later. H&r free tax   Disaster unemployment assistance payments are unemployment benefits that are taxable. H&r free tax   Generally, disaster relief grants received under the Robert T. H&r free tax Stafford Disaster Relief and Emergency Assistance Act are not included in your income. H&r free tax See Federal disaster relief grants , later, under Disaster Area Losses. H&r free tax Loan proceeds. H&r free tax   Do not reduce your casualty loss by loan proceeds you use to rehabilitate or replace property on which you are claiming a casualty loss deduction. H&r free tax If you have a federal loan that is canceled (forgiven), see Federal loan canceled , later, under Disaster Area Losses. H&r free tax Reimbursement Received After Deducting Loss If you figured your casualty or theft loss using the amount of your expected reimbursement, you may have to adjust your tax return for the tax year in which you get your actual reimbursement. H&r free tax This section explains the adjustment you may have to make. H&r free tax Actual reimbursement less than expected. H&r free tax   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 free tax Example. H&r free tax Your personal car had a FMV of $2,000 when it was destroyed in a collision with another car in 2012. H&r free tax The accident was due to the negligence of the other driver. H&r free tax At the end of 2012, there was a reasonable prospect that the owner of the other car would reimburse you in full. H&r free tax You did not have a deductible loss in 2012. H&r free tax In January 2013, the court awards you a judgment of $2,000. H&r free tax However, in July it becomes apparent that you will be unable to collect any amount from the other driver. H&r free tax Since this is your only casualty or theft loss, you can deduct the loss in 2013 that is figured by applying the Deduction Limits (discussed later). H&r free tax Actual reimbursement more than expected. H&r free tax   If you later receive more reimbursement than you expected, after you have claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. H&r free tax 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 free tax You do not refigure your tax for the year you claimed the deduction. H&r free tax See Recoveries in Publication 525 to find out how much extra reimbursement to include in income. H&r free tax Example. H&r free tax In 2012, a hurricane destroyed your motorboat. H&r free tax Your loss was $3,000, and you estimated that your insurance would cover $2,500 of it. H&r free tax You did not itemize deductions on your 2012 return, so you could not deduct the loss. H&r free tax When the insurance company reimburses you for the loss, you do not report any of the reimbursement as income. H&r free tax This is true even if it is for the full $3,000 because you did not deduct the loss on your 2012 return. H&r free tax The loss did not reduce your tax. H&r free tax    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 free tax 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 free tax Include the gain as ordinary income up to the amount of your deduction that reduced your tax for the earlier year. H&r free tax You may be able to postpone reporting any remaining gain as explained under Postponement of Gain, later. H&r free tax Actual reimbursement same as expected. H&r free tax   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 free tax Example. H&r free tax In December 2013, you had a collision while driving your personal car. H&r free tax Repairs to the car cost $950. H&r free tax You had $100 deductible collision insurance. H&r free tax Your insurance company agreed to reimburse you for the rest of the damage. H&r free tax Because you expected a reimbursement from the insurance company, you did not have a casualty loss deduction in 2013. H&r free tax Due to the $100 rule, you cannot deduct the $100 you paid as the deductible. H&r free tax When you receive the $850 from the insurance company in 2014, do not report it as income. H&r free tax Deduction Limits After you have figured your casualty or theft loss, you must figure how much of the loss you can deduct. H&r free tax The deduction for casualty and theft losses of employee property and personal-use property is limited. H&r free tax A loss on employee property is subject to the 2% rule, discussed next. H&r free tax With certain exceptions, a loss on property you own for your personal use is subject to the $100 and 10% rules, discussed later. H&r free tax The 2%, $100, and 10% rules are also summarized in Table 2 . H&r free tax Losses on business property (other than employee property) and income-producing property are not subject to these rules. H&r free tax However, if your casualty or theft loss involved a home you used for business or rented out, your deductible loss may be limited. H&r free tax See the Instructions for Form 4684, Section B. H&r free tax If the casualty or theft loss involved property used in a passive activity, see Form 8582, Passive Activity Loss Limitations, and its instructions. H&r free tax 2% Rule The casualty and theft loss deduction for employee property, when added to your job expenses and most other miscellaneous itemized deductions on Schedule A (Form 1040) or Form 1040NR, Schedule A, must be reduced by 2% of your adjusted gross income. H&r free tax Employee property is property used in performing services as an employee. H&r free tax $100 Rule After you have figured your casualty or theft loss on personal-use property, as discussed earlier, you must reduce that loss by $100. H&r free tax This reduction applies to each total casualty or theft loss. H&r free tax It does not matter how many pieces of property are involved in an event. H&r free tax Only a single $100 reduction applies. H&r free tax Example. H&r free tax You have $750 deductible collision insurance on your car. H&r free tax The car is damaged in a collision. H&r free tax The insurance company pays you for the damage minus the $750 deductible. H&r free tax The amount of the casualty loss is based solely on the deductible. H&r free tax The casualty loss is $650 ($750 − $100) because the first $100 of a casualty loss on personal-use property is not deductible. H&r free tax Single event. H&r free tax   Generally, events closely related in origin cause a single casualty. H&r free tax 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 free tax A single casualty may also damage two or more pieces of property, such as a hailstorm that damages both your home and your car parked in your driveway. H&r free tax Example 1. H&r free tax A thunderstorm destroyed your pleasure boat. H&r free tax You also lost some boating equipment in the storm. H&r free tax Your loss was $5,000 on the boat and $1,200 on the equipment. H&r free tax Your insurance company reimbursed you $4,500 for the damage to your boat. H&r free tax You had no insurance coverage on the equipment. H&r free tax Your casualty loss is from a single event and the $100 rule applies once. H&r free tax Figure your loss before applying the 10% rule (discussed later) as follows. H&r free tax     Boat Equipment 1. H&r free tax Loss $5,000 $1,200 2. H&r free tax Subtract insurance 4,500 -0- 3. H&r free tax Loss after reimbursement $ 500 $1,200 4. H&r free tax Total loss $1,700 5. H&r free tax Subtract $100 100 6. H&r free tax Loss before 10% rule $1,600 Example 2. H&r free tax Thieves broke into your home in January and stole a ring and a fur coat. H&r free tax You had a loss of $200 on the ring and $700 on the coat. H&r free tax This is a single theft. H&r free tax The $100 rule applies to the total $900 loss. H&r free tax Example 3. H&r free tax In September, hurricane winds blew the roof off your home. H&r free tax Flood waters caused by the hurricane further damaged your home and destroyed your furniture and personal car. H&r free tax This is considered a single casualty. H&r free tax The $100 rule is applied to your total loss from the flood waters and the wind. H&r free tax More than one loss. H&r free tax   If you have more than one casualty or theft loss during your tax year, you must reduce each loss by $100. H&r free tax Example. H&r free tax Your family car was damaged in an accident in January. H&r free tax Your loss after the insurance reimbursement was $75. H&r free tax In February, your car was damaged in another accident. H&r free tax This time your loss after the insurance reimbursement was $90. H&r free tax Apply the $100 rule to each separate casualty loss. H&r free tax Since neither accident resulted in a loss of over $100, you are not entitled to any deduction for these accidents. H&r free tax More than one person. H&r free tax   If two or more individuals (other than a husband and wife filing a joint return) have losses from the same casualty or theft, the $100 rule applies separately to each individual. H&r free tax Example. H&r free tax A fire damaged your house and also damaged the personal property of your house guest. H&r free tax You must reduce your loss by $100. H&r free tax Your house guest must reduce his or her loss by $100. H&r free tax Married taxpayers. H&r free tax   If you and your spouse file a joint return, you are treated as one individual in applying the $100 rule. H&r free tax It does not matter whether you own the property jointly or separately. H&r free tax   If you and your spouse have a casualty or theft loss and you file separate returns, each of you must reduce your loss by $100. H&r free tax This is true even if you own the property jointly. H&r free tax If one spouse owns the property, only that spouse can figure a loss deduction on a separate return. H&r free tax   If the casualty or theft loss is on property you own as tenants by the entirety, each of you can figure your deduction on only one-half of the loss on separate returns. H&r free tax Neither of you can figure your deduction on the entire loss on a separate return. H&r free tax Each of you must reduce the loss by $100. H&r free tax More than one owner. H&r free tax   If two or more individuals (other than a husband and wife filing a joint return) have a loss on property jointly owned, the $100 rule applies separately to each. H&r free tax For example, if two sisters live together in a home they own jointly and they have a casualty loss on the home, the $100 rule applies separately to each sister. H&r free tax 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 free tax Apply this rule after you reduce each loss by $100. H&r free tax For more information, see the Form 4684 instructions. H&r free tax If you have both gains and losses from casualties or thefts, see Gains and losses , later in this discussion. H&r free tax Example. H&r free tax In June, you discovered that your house had been burglarized. H&r free tax Your loss after insurance reimbursement was $2,000. H&r free tax Your adjusted gross income for the year you discovered the theft is $29,500. H&r free tax Figure your theft loss as follows. H&r free tax 1. H&r free tax Loss after insurance $2,000 2. H&r free tax Subtract $100 100 3. H&r free tax Loss after $100 rule $1,900 4. H&r free tax Subtract 10% of $29,500 AGI $2,950 5. H&r free tax Theft loss deduction $-0- You do not have a theft loss deduction because your loss ($1,900) is less than 10% of your adjusted gross income ($2,950). H&r free tax More than one loss. H&r free tax   If you have more than one casualty or theft loss during your tax year, reduce each loss by any reimbursement and by $100. H&r free tax Then you must reduce the total of all your losses by 10% of your adjusted gross income. H&r free tax Example. H&r free tax In March, you had a car accident that totally destroyed your car. H&r free tax You did not have collision insurance on your car, so you did not receive any insurance reimbursement. H&r free tax Your loss on the car was $1,800. H&r free tax In November, a fire damaged your basement and totally destroyed the furniture, washer, dryer, and other items you had stored there. H&r free tax Your loss on the basement items after reimbursement was $2,100. H&r free tax Your adjusted gross income for the year that the accident and fire occurred is $25,000. H&r free tax You figure your casualty loss deduction as follows. H&r free tax     Car Basement 1. H&r free tax Loss $1,800 $2,100 2. H&r free tax Subtract $100 per incident 100 100 3. H&r free tax Loss after $100 rule $1,700 $2,000 4. H&r free tax Total loss $3,700 5. H&r free tax Subtract 10% of $25,000 AGI 2,500 6. H&r free tax Casualty loss deduction $1,200 Married taxpayers. H&r free tax   If you and your spouse file a joint return, you are treated as one individual in applying the 10% rule. H&r free tax It does not matter if you own the property jointly or separately. H&r free tax   If you file separate returns, the 10% rule applies to each return on which a loss is claimed. H&r free tax More than one owner. H&r free tax   If two or more individuals (other than husband and wife filing a joint return) have a loss on property that is owned jointly, the 10% rule applies separately to each. H&r free tax Gains and losses. H&r free tax   If you have casualty or theft gains as well as losses to personal-use property, you must compare your total gains to your total losses. H&r free tax 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 free tax Casualty or theft gains do not include gains you choose to postpone. H&r free tax See Postponement of Gain, later. H&r free tax Losses more than gains. H&r free tax   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 free tax The rest, if any, is your deductible loss from personal-use property. H&r free tax Example. H&r free tax Your theft loss after reducing it by reimbursements and by $100 is $2,700. H&r free tax Your casualty gain is $700. H&r free tax Your loss is more than your gain, so you must reduce your $2,000 net loss ($2,700 − $700) by 10% of your adjusted gross income. H&r free tax Gains more than losses. H&r free tax   If your recognized gains are more than your losses, subtract your losses from your gains. H&r free tax The difference is treated as a capital gain and must be reported on Schedule D (Form 1040). H&r free tax The 10% rule does not apply to your gains. H&r free tax Example. H&r free tax Your theft loss is $600 after reducing it by reimbursements and by $100. H&r free tax Your casualty gain is $1,600. H&r free tax Because your gain is more than your loss, you must report the $1,000 net gain ($1,600 − $600) on Schedule D (Form 1040). H&r free tax More information. H&r free tax   For information on how to figure recognized gains, see Figuring a Gain , later. H&r free tax Figuring the Deduction Generally, you must figure your loss separately for each item stolen, damaged, or destroyed. H&r free tax However, a special rule applies to real property you own for personal use. H&r free tax Real property. H&r free tax   In figuring a loss to real estate you own for personal use, all improvements (such as buildings and ornamental trees and the land containing the improvements) are considered together. H&r free tax Example 1. H&r free tax In June, a fire destroyed your lakeside cottage, which cost $144,800 (including $14,500 for the land) several years ago. H&r free tax (Your land was not damaged. H&r free tax ) This was your only casualty or theft loss for the year. H&r free tax The FMV of the property immediately before the fire was $180,000 ($145,000 for the cottage and $35,000 for the land). H&r free tax The FMV immediately after the fire was $35,000 (value of the land). H&r free tax You collected $130,000 from the insurance company. H&r free tax Your adjusted gross income for the year the fire occurred is $80,000. H&r free tax Your deduction for the casualty loss is $6,700, figured in the following manner. H&r free tax 1. H&r free tax Adjusted basis of the entire property (cost in this example) $144,800 2. H&r free tax FMV of entire property  before fire $180,000 3. H&r free tax FMV of entire property after fire 35,000 4. H&r free tax Decrease in FMV of entire property (line 2 − line 3) $145,000 5. H&r free tax Loss (smaller of line 1 or line 4) $144,800 6. H&r free tax Subtract insurance 130,000 7. H&r free tax Loss after reimbursement $14,800 8. H&r free tax Subtract $100 100 9. H&r free tax Loss after $100 rule $14,700 10. H&r free tax Subtract 10% of $80,000 AGI 8,000 11. H&r free tax Casualty loss deduction $ 6,700 Example 2. H&r free tax You bought your home a few years ago. H&r free tax You paid $150,000 ($10,000 for the land and $140,000 for the house). H&r free tax You also spent an additional $2,000 for landscaping. H&r free tax This year a fire destroyed your home. H&r free tax The fire also damaged the shrubbery and trees in your yard. H&r free tax The fire was your only casualty or theft loss this year. H&r free tax Competent appraisers valued the property as a whole at $175,000 before the fire, but only $50,000 after the fire. H&r free tax Shortly after the fire, the insurance company paid you $95,000 for the loss. H&r free tax Your adjusted gross income for this year is $70,000. H&r free tax You figure your casualty loss deduction as follows. H&r free tax 1. H&r free tax Adjusted basis of the entire property (cost of land, building, and landscaping) $152,000 2. H&r free tax FMV of entire property  before fire $175,000 3. H&r free tax FMV of entire property after fire 50,000 4. H&r free tax Decrease in FMV of entire property (line 2 − line 3) $125,000 5. H&r free tax Loss (smaller of line 1 or line 4) $125,000 6. H&r free tax Subtract insurance 95,000 7. H&r free tax Loss after reimbursement $30,000 8. H&r free tax Subtract $100 100 9. H&r free tax Loss after $100 rule $29,900 10. H&r free tax Subtract 10% of $70,000 AGI 7,000 11. H&r free tax Casualty loss deduction $ 22,900 Personal property. H&r free tax   Personal property is any property that is not real property. H&r free tax 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 free tax Then combine these separate losses to figure the total loss. H&r free tax Reduce the total loss by $100 and 10% of your adjusted gross income to figure the loss deduction. H&r free tax Example 1. H&r free tax In August, a storm destroyed your pleasure boat, which cost $18,500. H&r free tax This was your only casualty or theft loss for the year. H&r free tax Its FMV immediately before the storm was $17,000. H&r free tax You had no insurance, but were able to salvage the motor of the boat and sell it for $200. H&r free tax Your adjusted gross income for the year the casualty occurred is $70,000. H&r free tax Although the motor was sold separately, it is part of the boat and not a separate item of property. H&r free tax You figure your casualty loss deduction as follows. H&r free tax 1. H&r free tax Adjusted basis (cost in this example) $18,500 2. H&r free tax FMV before storm $17,000 3. H&r free tax FMV after storm 200 4. H&r free tax Decrease in FMV  (line 2 − line 3) $16,800 5. H&r free tax Loss (smaller of line 1 or line 4) $16,800 6. H&r free tax Subtract insurance -0- 7. H&r free tax Loss after reimbursement $16,800 8. H&r free tax Subtract $100 100 9. H&r free tax Loss after $100 rule $16,700 10. H&r free tax Subtract 10% of $70,000 AGI 7,000 11. H&r free tax Casualty loss deduction $ 9,700 Example 2. H&r free tax In June, you were involved in an auto accident that totally destroyed your personal car and your antique pocket watch. H&r free tax You had bought the car for $30,000. H&r free tax The FMV of the car just before the accident was $17,500. H&r free tax Its FMV just after the accident was $180 (scrap value). H&r free tax Your insurance company reimbursed you $16,000. H&r free tax Your watch was not insured. H&r free tax You had purchased it for $250. H&r free tax Its FMV just before the accident was $500. H&r free tax Your adjusted gross income for the year the accident occurred is $97,000. H&r free tax Your casualty loss deduction is zero, figured as follows. H&r free tax     Car Watch 1. H&r free tax Adjusted basis (cost) $30,000 $250 2. H&r free tax FMV before accident $17,500 $500 3. H&r free tax FMV after accident 180 -0- 4. H&r free tax Decrease in FMV (line 2 − line 3) $17,320 $500 5. H&r free tax Loss (smaller of line 1 or line 4) $17,320 $250 6. H&r free tax Subtract insurance 16,000 -0- 7. H&r free tax Loss after reimbursement $1,320 $250 8. H&r free tax Total loss $1,570 9. H&r free tax Subtract $100 100 10. H&r free tax Loss after $100 rule $1,470 11. H&r free tax Subtract 10% of $97,000 AGI 9,700 12. H&r free tax Casualty loss deduction $ -0- Both real and personal properties. H&r free tax   When a casualty involves both real and personal properties, you must figure the loss separately for each type of property. H&r free tax However, you apply a single $100 reduction to the total loss. H&r free tax Then, you apply the 10% rule to figure the casualty loss deduction. H&r free tax Example. H&r free tax In July, a hurricane damaged your home, which cost you $164,000 including land. H&r free tax The FMV of the property (both building and land) immediately before the storm was $170,000 and its FMV immediately after the storm was $100,000. H&r free tax Your household furnishings were also damaged. H&r free tax You separately figured the loss on each damaged household item and arrived at a total loss of $600. H&r free tax You collected $50,000 from the insurance company for the damage to your home, but your household furnishings were not insured. H&r free tax Your adjusted gross income for the year the hurricane occurred is $65,000. H&r free tax You figure your casualty loss deduction from the hurricane in the following manner. H&r free tax 1. H&r free tax Adjusted basis of real property (cost in this example) $164,000 2. H&r free tax FMV of real property before hurricane $170,000 3. H&r free tax FMV of real property after hurricane 100,000 4. H&r free tax Decrease in FMV of real property (line 2 − line 3) $70,000 5. H&r free tax Loss on real property (smaller of line 1 or line 4) $70,000 6. H&r free tax Subtract insurance 50,000 7. H&r free tax Loss on real property after reimbursement $20,000 8. H&r free tax Loss on furnishings $600 9. H&r free tax Subtract insurance -0- 10. H&r free tax Loss on furnishings after reimbursement $600 11. H&r free tax Total loss (line 7 plus line 10) $20,600 12. H&r free tax Subtract $100 100 13. H&r free tax Loss after $100 rule $20,500 14. H&r free tax Subtract 10% of $65,000 AGI 6,500 15. H&r free tax Casualty loss deduction $14,000 Property used partly for business and partly for personal purposes. H&r free tax   When property is used partly for personal purposes and partly for business or income-producing purposes, the casualty or theft loss deduction must be figured separately for the personal-use portion and for the business or income-producing portion. H&r free tax You must figure each loss separately because the losses attributed to these two uses are figured in two different ways. H&r free tax When figuring each loss, allocate the total cost or basis, the FMV before and after the casualty or theft loss, and the insurance or other reimbursement between the business and personal use of the property. H&r free tax The $100 rule and the 10% rule apply only to the casualty or theft loss on the personal-use portion of the property. H&r free tax Example. H&r free tax You own a building that you constructed on leased land. H&r free tax You use half of the building for your business and you live in the other half. H&r free tax The cost of the building was $400,000. H&r free tax You made no further improvements or additions to it. H&r free tax A flood in March damaged the entire building. H&r free tax The FMV of the building was $380,000 immediately before the flood and $320,000 afterwards. H&r free tax Your insurance company reimbursed you $40,000 for the flood damage. H&r free tax Depreciation on the business part of the building before the flood totaled $24,000. H&r free tax Your adjusted gross income for the year the flood occurred is $125,000. H&r free tax You have a deductible business casualty loss of $10,000. H&r free tax You do not have a deductible personal casualty loss because of the 10% rule. H&r free tax You figure your loss as follows. H&r free tax     Business   Personal     Part   Part 1. H&r free tax Cost (total $400,000) $200,000   $200,000 2. H&r free tax Subtract depreciation 24,000   -0- 3. H&r free tax Adjusted basis $176,000   $200,000 4. H&r free tax FMV before flood (total $380,000) $190,000   $190,000 5. H&r free tax FMV after flood (total $320,000) 160,000   160,000 6. H&r free tax Decrease in FMV  (line 4 − line 5) $30,000   $30,000 7. H&r free tax Loss (smaller of line 3 or line 6) $30,000   $30,000 8. H&r free tax Subtract insurance 20,000   20,000 9. H&r free tax Loss after reimbursement $10,000   $10,000 10. H&r free tax Subtract $100 on personal-use property -0-   100 11. H&r free tax Loss after $100 rule $10,000   $9,900 12. H&r free tax Subtract 10% of $125,000 AGI on personal-use property -0-   12,500 13. H&r free tax Deductible business loss $10,000     14. H&r free tax Deductible personal loss $-0- Figuring a Gain If you receive an insurance payment or other reimbursement that is more than your adjusted basis in the destroyed, damaged, or stolen property, you have a gain from the casualty or theft. H&r free tax Your gain is figured as follows. H&r free tax The amount you receive (discussed next), minus Your adjusted basis in the property at the time of the casualty or theft. H&r free tax See Adjusted Basis , earlier, for information on adjusted basis. H&r free tax Even if the decrease in FMV of your property is smaller than the adjusted basis of your property, use your adjusted basis to figure the gain. H&r free tax Amount you receive. H&r free tax   The amount you receive includes any money plus the value of any property you receive minus any expenses you have in obtaining reimbursement. H&r free tax It also includes any reimbursement used to pay off a mortgage or other lien on the damaged, destroyed, or stolen property. H&r free tax Example. H&r free tax A hurricane destroyed your personal residence and the insurance company awarded you $145,000. H&r free tax You received $140,000 in cash. H&r free tax The remaining $5,000 was paid directly to the holder of a mortgage on the property. H&r free tax The amount you received includes the $5,000 reimbursement paid on the mortgage. H&r free tax Main home destroyed. H&r free tax   If you have a gain because your main home was destroyed, you generally can exclude the gain from your income as if you had sold or exchanged your home. H&r free tax You may be able to exclude up to $250,000 of the gain (up to $500,000 if married filing jointly). H&r free tax To exclude a gain, you generally must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date it was destroyed. H&r free tax For information on this exclusion, see Publication 523. H&r free tax If your gain is more than the amount you can exclude, but you buy replacement property, you may be able to postpone reporting the excess gain. H&r free tax See Postponement of Gain , later. H&r free tax Reporting a gain. H&r free tax   You generally must report your gain as income in the year you receive the reimbursement. H&r free tax However, you do not have to report your gain if you meet certain requirements and choose to postpone reporting the gain according to the rules explained under Postponement of Gain, next. H&r free tax   For information on how to report a gain, see How To Report Gains and Losses , later. H&r free tax    If you have a casualty or theft gain on personal-use property that you choose to postpone reporting (as explained next) and you also have another casualty or theft loss on personal-use property, do not consider the gain you are postponing when figuring your casualty or theft loss deduction. H&r free tax See 10% Rule under Deduction Limits, earlier. H&r free tax Postponement of Gain Do not report a gain if you receive reimbursement in the form of property similar or related in service or use to the destroyed or stolen property. H&r free tax Your basis in the new property is generally the same as your adjusted basis in the property it replaces. H&r free tax You must ordinarily report the gain on your stolen or destroyed property if you receive money or unlike property as reimbursement. H&r free tax However, you can choose to postpone reporting the gain if you purchase property that is similar or related in service or use to the stolen or destroyed property within a specified replacement period, discussed later. H&r free tax You also can choose to postpone reporting the gain if you purchase a controlling interest (at least 80%) in a corporation owning property that is similar or related in service or use to the property. H&r free tax See Controlling interest in a corporation , later. H&r free tax If you have a gain on damaged property, you can postpone reporting the gain if you spend the reimbursement to restore the property. H&r free tax To postpone reporting all the gain, the cost of your replacement property must be at least as much as the reimbursement you receive. H&r free tax If the cost of the replacement property is less than the reimbursement, you must include the gain in your income up to the amount of the unspent reimbursement. H&r free tax Example. H&r free tax In 1970, you bought an oceanfront cottage for your personal use at a cost of $18,000. H&r free tax You made no further improvements or additions to it. H&r free tax When a storm destroyed the cottage this January, the cottage was worth $250,000. H&r free tax You received $146,000 from the insurance company in March. H&r free tax You had a gain of $128,000 ($146,000 − $18,000). H&r free tax You spent $144,000 to rebuild the cottage. H&r free tax Since this is less than the insurance proceeds received, you must include $2,000 ($146,000 − $144,000) in your income. H&r free tax Buying replacement property from a related person. H&r free tax   You cannot postpone reporting a gain from a casualty or theft if you buy the replacement property from a related person (discussed later). H&r free tax This rule applies to the following taxpayers. H&r free tax C corporations. H&r free tax Partnerships in which more than 50% of the capital or profits interests is owned by C corporations. H&r free tax All others (including individuals, partnerships — other than those in (2) — and S corporations) if the total realized gain for the tax year on all destroyed or stolen properties on which there are realized gains is more than $100,000. H&r free tax For casualties and thefts described in (3) above, gains cannot be offset by any losses when determining whether the total gain is more than $100,000. H&r free tax If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. H&r free tax If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. H&r free tax Exception. H&r free tax   This rule does not apply if the related person acquired the property from an unrelated person within the period of time allowed for replacing the destroyed or stolen property. H&r free tax Related persons. H&r free tax   Under this rule, related persons include, for example, a parent and child, a brother and sister, a corporation and an individual who owns more than 50% of its outstanding stock, and two partnerships in which the same C corporations own more than 50% of the capital or profits interests. H&r free tax For more information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. H&r free tax Death of a taxpayer. H&r free tax   If a taxpayer dies after having a gain but before buying replacement property, the gain must be reported for the year in which the decedent realized the gain. H&r free tax The executor of the estate or the person succeeding to the funds from the casualty or theft cannot postpone reporting the gain by buying replacement property. H&r free tax Replacement Property You must buy replacement property for the specific purpose of replacing your destroyed or stolen property. H&r free tax Property you acquire as a gift or inheritance does not qualify. H&r free tax You do not have to use the same funds you receive as
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The H&r Free Tax

H&r free tax Publication 596SP - Introductory Material Table of Contents Acontecimientos Futuros ¿Qué es el Crédito por Ingreso del Trabajo (EIC)? ¿Puedo Reclamar el Crédito por Ingreso del Trabajo (EIC)? ¿Necesito esta Publicación? ¿Hay que Tener un Hijo para Tener Derecho al Crédito por Ingreso del Trabajo (EIC)? ¿Cómo Calculo la Cantidad del Crédito por Ingreso del Trabajo (EIC)? ¿Cómo Puedo Encontrar Rápidamente Información Específica? ¿Hay Ayuda Disponible en Internet? Qué Hay de Nuevo para el año 2013 Recordatorios Acontecimientos Futuros Para la información más actualizada sobre los acontecimientos que afectan la Publicación 596(SP), tales como legislación promulgada después de su publicación, visite www. H&r free tax irs. H&r free tax gov/pub596sp, en inglés. H&r free tax ¿Qué es el Crédito por Ingreso del Trabajo (EIC)? El crédito por ingreso del trabajo (EIC, por sus siglas en inglés) es un crédito tributario para aquellas personas que trabajan y que reciben ingreso del trabajo inferior a $51,567. H&r free tax Un crédito tributario significa que va a tener más dinero disponible porque reduce la cantidad de impuesto a pagar. H&r free tax El crédito por ingreso del trabajo (EIC) también podría proporcionarle un reembolso. H&r free tax ¿Puedo Reclamar el Crédito por Ingreso del Trabajo (EIC)? Para tener derecho al crédito por ingreso del trabajo (EIC), tiene que cumplir determinados requisitos. H&r free tax Dichos requisitos se resumen en la Tabla 1. H&r free tax Tabla 1. H&r free tax Síntesis del Crédito por Ingreso del Trabajo Primero, tiene que cumplir todos los requisitos de esta columna. H&r free tax Segundo, tiene que cumplir todos los requisitos de una de estas columnas, la que le corresponda. H&r free tax Tercero, tiene que cumplir el requisito de esta columna. H&r free tax Capítulo 1. H&r free tax  Requisitos para Todos Capítulo 2. H&r free tax  Requisitos que Tiene que Cumplir si Tiene un Hijo Calificado Capítulo 3. H&r free tax  Requisitos que Tiene que Cumplir si no Tiene un Hijo Calificado Capítulo 4. H&r free tax  Calcular y Reclamar el Crédito por Ingreso del Trabajo (EIC) 1. H&r free tax Tiene que tener  ingresos brutos ajustados (AGI, por sus siglas en inglés) inferiores a:  • $46,227 ($51,567 para casados que presentan una declaración conjunta) si tiene tres o más hijos calificados,  • $43,038 ($48,378 para casados que presentan una declaración conjunta) si tiene dos hijos calificados,  • $37,870 ($43,210 para casados que presentan una declaración conjunta) si tiene un hijo calificado o  • $14,340 ($19,680 para casados que presentan una declaración conjunta) si no tiene un hijo calificado. H&r free tax 2. H&r free tax Tiene que tener un número de Seguro Social válido. H&r free tax   3. H&r free tax Su estado civil para efectos de la declaración no puede ser  “casado que presenta la declaración por separado”. H&r free tax   4. H&r free tax Tiene que ser ciudadano de los Estados Unidos o extranjero residente durante todo el año. H&r free tax   5. H&r free tax No puede presentar el Formulario 2555 ni el Formulario 2555-EZ (relacionado con el ingreso del trabajo en el extranjero). H&r free tax   6. H&r free tax Sus ingresos procedentes de inversiones tienen que ser de $3,300 o menos. H&r free tax    7. H&r free tax Tiene que haber recibido ingreso del trabajo. H&r free tax 8. H&r free tax Su hijo tiene que cumplir los requisitos de parentesco, edad, residencia y de declaración conjunta. H&r free tax   9. H&r free tax Soló una persona puede utilizar su hijo calificado para fines de reclamar el crédito por ingreso del trabajo (EIC). H&r free tax   10. H&r free tax Usted no puede ser el hijo calificado de otra persona. H&r free tax 11. H&r free tax Tiene que tener por lo menos 25 años de edad pero menos de 65 años de edad. H&r free tax   12. H&r free tax Usted no puede ser dependiente de otra persona. H&r free tax   13. H&r free tax Usted no puede ser el hijo calificado de otra persona. H&r free tax   14. H&r free tax Tiene que haber vivido en los Estados Unidos durante más de la mitad del año. H&r free tax 15. H&r free tax Tiene que tener ingresos del trabajo inferiores a:  • $46,227 ($51,567 para casados que presentan una declaración conjunta) si tiene tres o más hijos calificados,  • $43,038 ($48,378 para casados que presentan una declaración conjunta) si tiene dos hijos calificados,  • $37,870 ($43,210 para casados que presentan una declaración conjunta) si tiene un hijo calificado o  • $14,340 ($19,680 para casados que presentan una declaración conjunta) si no tiene un hijo calificado. H&r free tax ¿Necesito esta Publicación? Algunas personas que presenten el Formulario 1040 tienen que usar la Hoja de Trabajo 1 de esta publicación, en vez de consultar el Paso 2 de las instrucciones para el Formulario 1040, para determinar si pueden reclamar el crédito por ingreso del trabajo (EIC). H&r free tax Usted se encuentra en esta categoría si alguna de las siguientes situaciones le corresponde para el año 2013. H&r free tax Presenta el Anexo E (Formulario 1040). H&r free tax Declara ingresos provenientes del alquiler de bienes inmuebles/muebles que no son utilizados en un oficio o negocio. H&r free tax Declara ingresos en la línea 21 del Formulario 1040 que provienen del Formulario 8814 (relacionados con la elección de declarar los intereses y dividendos recibidos por un hijo). H&r free tax Declara una cantidad en la línea 13 del Formulario 1040 que incluye una cantidad del Formulario 4797. H&r free tax Si ninguna de las situaciones que aparecen anteriormente le corresponde, las instrucciones del formulario de impuestos contienen toda la información que necesita para saber si puede reclamar el crédito por ingreso del trabajo (EIC) y para calcular la cantidad del mismo. H&r free tax No necesita esta publicación, pero puede leerla para saber si puede reclamar el crédito por ingreso del trabajo (EIC) y para aprender más sobre este crédito. H&r free tax ¿Hay que Tener un Hijo para Tener Derecho al Crédito por Ingreso del Trabajo (EIC)? No. H&r free tax Puede reunir los requisitos del crédito por ingreso del trabajo (EIC) aunque no tenga un hijo calificado si usted tiene como mínimo 25 años de edad pero menos de 65 años y tiene ingresos del trabajo inferiores a $14,340 ($19,680 si es casado que presenta una declaración conjunta). H&r free tax Vea el capítulo 3 para información adicional. H&r free tax ¿Cómo Calculo la Cantidad del Crédito por Ingreso del Trabajo (EIC)? Si puede reclamar el crédito por ingreso del trabajo (EIC), tiene la opción de solicitar que el IRS le calcule la cantidad del crédito o puede calcularlo usted mismo. H&r free tax Para calcularlo usted mismo, puede llenar la hoja de trabajo que se encuentra en las instrucciones del formulario que presente. H&r free tax Para saber cómo solicitar que el IRS le calcule la cantidad del crédito, vea el capítulo 4. H&r free tax ¿Cómo Puedo Encontrar Rápidamente Información Específica? Puede utilizar el índice para buscar información específica. H&r free tax En la mayoría de los casos, el índice hace referencia a títulos, tablas u hojas de trabajo. H&r free tax ¿Hay Ayuda Disponible en Internet? Sí. H&r free tax Puede utilizar el Asistente EITC en el sitio web www. H&r free tax irs. H&r free tax gov/espanol para saber si tiene derecho al crédito. H&r free tax El Asistente EITC está disponible en español y en inglés. H&r free tax Qué Hay de Nuevo para el año 2013 La cantidad de ingresos del trabajo ha aumentado. H&r free tax La cantidad máxima de ingresos que usted puede ganar y aún obtener el crédito ha aumentado. H&r free tax Tal vez pueda reclamar el crédito si: Tiene tres o más hijos calificados y gana menos de $46,227 ($51,567 si es casado que presenta una declaración conjunta), Tiene dos hijos calificados y gana menos de $43,038 ($48,378 si es casado que presenta una declaración conjunta), Tiene un hijo calificado y gana menos de $37,870 ($43,210 si es casado que presenta una declaración conjunta) o No tiene un hijo calificado y gana menos de $14,340 ($19,680 si es casado que presenta una declaración conjunta). H&r free tax Además, tiene que tener ingresos brutos ajustados inferiores a la cantidad que le corresponda de la lista anterior. H&r free tax Para más información, vea los Requisitos 1 y 15. H&r free tax La cantidad de ingresos de inversiones ha aumentado. H&r free tax La cantidad máxima de ingresos de inversiones que usted puede ganar y aún obtener el crédito ha aumentado a $3,300. H&r free tax Vea el Requisito 6 —Tiene que tener ingresos de inversiones de $3,300 o menos . H&r free tax Recordatorios Aumento del crédito por ingreso del trabajo (EIC) en ciertas declaraciones conjuntas. H&r free tax  Una persona casada que presente una declaración conjunta podría recibir un crédito mayor que el que recibe otra persona que tenga los mismos ingresos pero con un estado civil diferente para efectos de la declaración. H&r free tax Por lo tanto, la Tabla del Crédito por Ingreso del Trabajo (EIC) tiene columnas distintas para las personas casadas que presenten una declaración conjunta que para los demás. H&r free tax Cuando busque su crédito por ingreso del trabajo en la Tabla del Crédito por Ingreso del Trabajo (EIC), asegúrese de usar la columna correcta para su estado civil para efectos de la declaración y el número de hijos que tenga. H&r free tax El crédito por ingreso del trabajo (EIC) no afecta ciertos pagos de bienestar social. H&r free tax  Todo reembolso que reciba por el crédito por ingreso del trabajo (EIC) no se considera ingreso al determinar si usted u otra persona tiene derecho a recibir beneficios de los programas de asistencia social que se indican a continuación, ni al determinar la cantidad que usted u otra persona puede recibir de algún programa federal, o algún programa estatal o local que recibe todo o parte de sus fondos de fuentes federales. H&r free tax Tales programas incluyen los siguientes: Asistencia Temporal para Familias Necesitadas (TANF, por sus siglas en inglés). H&r free tax Seguro Medicaid. H&r free tax Seguridad de Ingreso Suplementario (SSI, por sus siglas en inglés). H&r free tax Programas de Asistencia Suplementaria de Alimentación (SNAP, por sus siglas en inglés) (cupones para alimentos). H&r free tax Viviendas para personas de bajos ingresos. H&r free tax Además, cuando determine la elegibilidad, el reembolso no podrá ser contado como una fuente de ingresos, durante por lo menos 12 meses después que usted lo reciba. H&r free tax Hable con el coordinador de beneficios local para averiguar si su reembolso afectará sus beneficios. H&r free tax No se olvide del crédito estatal. H&r free tax  Si reúne los requisitos para reclamar el crédito por ingreso del trabajo (EIC) en la declaración de impuestos federales sobre los ingresos, podría tener también derecho a reclamar un crédito parecido en la declaración de impuestos estatales o locales sobre los ingresos. H&r free tax Para ver una lista de estados que ofrecen el crédito estatal por ingreso del trabajo, visite www. H&r free tax irs. H&r free tax gov/eitc. H&r free tax En caso de que el IRS cuestione el crédito por ingreso del trabajo (EIC). H&r free tax  El IRS puede pedirle que entregue documentos para comprobar que usted tiene derecho al crédito por ingreso del trabajo (EIC). H&r free tax Le informaremos cuáles documentos debe enviarnos. H&r free tax Éstos pueden incluir actas de nacimiento, expedientes académicos, expedientes médicos, etc. H&r free tax El proceso para determinar su derecho al crédito demorará su reembolso. H&r free tax Fotografías de niños desaparecidos. H&r free tax  El IRS se complace en colaborar con el Centro Nacional de Niños Desaparecidos y Explotados (National Center for Missing and Exploited Children). H&r free tax Esta publicación puede contener fotografías de niños desaparecidos seleccionadas por el Centro en páginas que de otra manera estarían en blanco. H&r free tax Usted puede ayudar a que estos niños regresen a su hogar si al mirar sus fotografías los identifica y llama gratis al 1-800-THE-LOST (1-800-843-5678). H&r free tax Comentarios y sugerencias. H&r free tax  Agradeceremos sus comentarios acerca de esta publicación, así como sus sugerencias para ediciones futuras. H&r free tax Nos puede escribir a la dirección siguiente:  Internal Revenue Service Tax Forms and Publications 1111 Constitution Ave. H&r free tax NW, IR-6526 Washington, DC 20224 Contestamos muchas cartas por teléfono. H&r free tax Por lo tanto, sería útil que incluyera en la correspondencia su número de teléfono, con el código de área, para llamar durante el día. H&r free tax Usted nos puede enviar comentarios desde la página web en www. H&r free tax irs. H&r free tax gov/formspubs, en inglés. H&r free tax Pulse sobre “More Information,” (Más información) y seleccionando “Give us feedback. H&r free tax ” (Proveer comentarios). H&r free tax Aunque no podemos contestar individualmente cada comentario, agradecemos sus comentarios y sugerencias y los tendremos en cuenta para ediciones futuras de nuestros productos tributarios. H&r free tax Para pedir formularios y publicaciones. H&r free tax  Visite www. H&r free tax irs. H&r free tax gov/formspubs para descargar formularios y publicaciones, llame al 1-800-829-3676 para pedir formularios y publicaciones o escriba a la dirección a continuación para recibir una respuesta dentro de los 10 días después de recibir su solicitud. H&r free tax  Internal Revenue Service 1201 N. H&r free tax Mitsubishi Motorway Bloomington, IL 61705-6613 Preguntas sobre los impuestos. H&r free tax  Si tiene una pregunta sobre los impuestos, verifique la información disponible en IRS. H&r free tax gov/espanol o llame al 1-800-829-1040. H&r free tax No podemos contestar preguntas sobre impuestos enviadas a ninguna de las dos direcciones anteriores. H&r free tax Prev  Up  Next   Home   More Online Publications