Beruflich Dokumente
Kultur Dokumente
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inheritance. See Pub. 551, Basis of business income, it does not reduce your more than the value of the property
Assets, for details. casualty or theft loss. The reimbursement immediately before the casualty.
is income, however, and is taxed in the To figure a casualty loss to real estate
Line 3 same manner as your business income. not used in a trade, business, or for
Enter on this line the amount of insurance income-producing purposes, measure the
or other reimbursement you received or Line 4
decrease in value of the property as a
expect to receive for each property. If you are entitled to an insurance whole. All improvements, such as
Include your insurance coverage whether payment or other reimbursement for any buildings, trees, and shrubs, are
or not you are filing a claim for part of a casualty or theft loss but you considered together as one item. Figure
reimbursement. For example, your car choose not to file a claim for the loss, you the loss separately for other items. For
worth $2,000 is totally destroyed in a cannot realize a gain from that payment example, figure the loss separately for
collision. You are insured with a $500 or reimbursement. Therefore, figure the each piece of furniture.
deductible, but decide not to report it to gain on line 4 by subtracting your cost or
your insurance company because you are other basis in the property (line 2) only Line 15
afraid the insurance company will cancel from the amount of reimbursement you If there is a net gain on this line:
your policy. In this case, enter $1,500 on actually received. Enter the result on line ● Combine your short-term gains with
this line. 4, but do not enter less than zero. your short-term losses, and enter the net
If you expect to be reimbursed but have If you filed a claim for reimbursement short-term gain or loss on Schedule D
not yet received payment, you must still but did not receive it until after the year (Form 1040), line 4. Estates and trusts
enter the expected reimbursement from of the casualty or theft, include the gain enter this amount on Schedule D (Form
the loss. If, in a later tax year, you in your income in the year you received 1041), line 2.
determine with reasonable certainty that the reimbursement. ● Combine your long-term gains with your
you will not be reimbursed for all or part long-term losses and enter the net
of the loss, you can deduct for that year Lines 5 and 6
long-term gain or loss on Schedule D
the amount of the loss that is not FMV is the price at which the property (Form 1040), line 11, column (f). Estates
reimbursed. would change hands between a willing and trusts enter this amount on Schedule
Types of reimbursements. Insurance is buyer and a willing seller, each having D (Form 1041), line 7, column (f).
the most common way to be reimbursed knowledge of the relevant facts. The
difference between the FMV immediately The holding period for long-term gains
for a casualty or theft loss, but if: and losses is more than 1 year. For
● Part of a Federal disaster loan under before the casualty or theft and the FMV
immediately after represents the decrease short-term gains and losses, it is 1 year
the Disaster Relief Act is forgiven, the part or less. To figure the holding period, begin
you do not have to pay back is considered in FMV because of the casualty or theft.
counting on the day after you received the
a reimbursement. The FMV of property after a theft is property and include the day the casualty
● The person who leases your property zero if the property is not recovered. or theft occurred.
must make repairs or must repay you for FMV is generally determined by
any part of a loss, the repayment and the competent appraisal. The appraiser's Line 17
cost of the repairs are considered knowledge of sales of comparable Estates and trusts figure adjusted gross
reimbursements. property about the same time as the income in the same way as individuals,
● A court awards you damages for a casualty or theft, knowledge of your except that the costs of administration are
casualty or theft loss, the amount you are property before and after the occurrence, allowed in figuring adjusted gross income.
able to collect, minus lawyers' fees and and the methods of determining FMV are
other necessary expenses, is a important elements in proving your loss. Section B—Business and
reimbursement. The appraised value of property Income-Producing Property
● You accept repairs, restoration, or immediately after the casualty must be Use a separate column of Part I, lines 19
cleanup services provided by relief adjusted (increased) for the effects of any through 27, to show each item lost or
agencies, it is considered a general market decline that may occur at damaged from a single casualty or theft.
reimbursement. the same time as the casualty or theft. For If more than four items were lost or
● A bonding company pays you for a theft
example, the value of all nearby property damaged, use additional sheets following
may become depressed because it is in the format of Part I, lines 19 through 27.
loss, the payment is also considered a
an area where such occurrences are Use a separate Section B, Part I, of
reimbursement.
commonplace. This general decline in Form 4684 for each casualty or theft
Lump-sum reimbursement. If you have market value is not part of the property's
a casualty or theft loss of several assets involving property used in a trade or
decrease in FMV as a result of the business or for income-producing
at the same time and you receive a casualty or theft.
lump-sum reimbursement, you must purposes. Use one Section B, Part II, to
Replacement cost or the cost of repairs combine all Sections B, Part I.
divide the amount you receive among the
is not necessarily FMV. However, you For details on the treatment of
assets according to the FMV of each
may be able to use the cost of repairs to casualties or thefts to business or
asset at the time of the loss.
the damaged property as evidence of loss income-producing property, including
Grants, gifts, and other payments. in value if:
Grants and other payments you receive rules on the loss of inventory through
● The repairs are necessary to restore
to help you after a casualty are casualty or theft, see Pub. 547.
considered reimbursements only if they the property to the condition it was in If you had a casualty or theft loss
must be used specifically to repair or immediately before the casualty; involving a home you used for business
● The amount spent for repairs is not
replace your property. Such payments or rented out, your deductible loss may
will reduce your casualty loss deduction. excessive; be limited. First, complete Form 4684,
If there are no conditions on how you ● The repairs only correct the damage Section B, lines 19 through 26. If the loss
have to use the money you receive, it is caused by the casualty; and involved a home used for a business for
not a reimbursement. ● The value of the property after the which you are filing Schedule C (Form
Use and occupancy insurance. If repairs is not, as a result of the repairs, 1040), figure your deductible casualty or
insurance reimburses you for your loss of theft loss on Form 8829, Expenses for
Business Use of Your Home. Enter on line
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27 of Form 4684 the deductible loss from losses on property held for more than 1 See the instructions for Form 4797, Part
line 33 of Form 8829, and write “See year, you must allocate the amount III, for more information on the types of
Form 8829” above line 27. For a home between lines 29 and 34 according to how property subject to recapture. If recapture
you rented out or used for a business for long you held each property. Enter on line applies, complete Form 4797, Part III, and
which you are not filing Schedule C (Form 29 all gains and losses on property held this line, instead of Form 4684, line 34.
1040), see section 280A(c)(5) to figure 1 year or less. Enter on line 34 all gains
your deductible loss. Attach a statement and losses on property held more than 1 Line 38a
showing your computation of the year, except as provided in the Taxpayers, other than partnerships and
deductible loss, enter that amount on line instructions for line 33 below. S corporations, if Form 4797 is not
27, and write “See attached statement” otherwise required, enter the amount from
above line 27. Part II, Column (a) this line on page 1 of your tax return, on
Note: A gain or loss from a casualty or Use a separate line for each casualty or the line identified as from Form 4797.
theft of property used in a passive activity theft. Next to that line, write “Form 4684.”
is not taken into account in determining Part II, Column (b)(i)
the loss from a passive activity unless
losses similar in cause and severity recur Enter the part of line 28 from trade, Paperwork Reduction Act Notice. We
regularly in the activity. See Form 8582, business, rental, or royalty property (other ask for the information on this form to
Passive Activity Loss Limitations, and its than property you used in performing carry out the Internal Revenue laws of the
instructions for details. services as an employee). United States. You are required to give
us the information. We need it to ensure
Line 20 Part II, Column (b)(ii) that you are complying with these laws
Cost or adjusted basis usually means Enter the part of line 28 from and to allow us to figure and collect the
original cost plus improvements, minus income-producing property and from right amount of tax.
depreciation allowed or allowable property you used in performing services You are not required to provide the
(including any section 179 expense as an employee. Income-producing information requested on a form that is
deduction), amortization, depletion, etc. property is property held for investment, subject to the Paperwork Reduction Act
Special rules apply to property received such as stocks, notes, bonds, gold, silver, unless the form displays a valid OMB
as a gift or inheritance. See Pub. 551 for vacant lots, and works of art. control number. Books or records relating
details. to a form or its instructions must be
Line 31
retained as long as their contents may
Line 21 If Form 4797, Sales of Business Property, become material in the administration of
See the instructions for line 3. is not otherwise required, enter the any Internal Revenue law. Generally, tax
amount from this line on page 1 of your returns and return information are
Line 22 tax return, on the line identified as from confidential, as required by section 6103.
See the instructions for line 4. Form 4797. Next to that line, write “Form The time needed to complete and file
4684.” this form will vary depending on individual
Lines 23 and 24
Line 32 circumstances. The estimated average
See the instructions for lines 5 and 6 for time is:
details on determining FMV. Estates and trusts, enter on the “Other
Loss on each item figured separately. deductions” line of your tax return. Recordkeeping ................ 1 hr., 58 min.
Unlike a casualty loss to personal use real Partnerships (except electing large Learning about the law
estate, in which all improvements are partnerships), enter on Form 1065, or the form ...................... 26 min.
considered one item, a casualty loss to Schedule K, line 11. Electing large
partnerships, enter on Form 1065-B, Part Preparing the form ......... 1 hr., 5 min.
business or income-producing property
must be figured separately for each item. II, line 11. S corporations, enter on Form Copying, assembling,
For example, if casualty damage occurs 1120S, Schedule K, line 10. Next to that and sending the form to
to both a building and to trees on the line, write “Form 4684.” the IRS ............................. 35 min.
same piece of real estate, measure the Line 33
loss separately for the building and for the If you have comments concerning the
trees. If you had a casualty or theft gain from accuracy of these time estimates or
certain trade, business, or suggestions for making this form simpler,
Line 28 income-producing property held more we would be happy to hear from you. See
If the amount on line 28 includes losses than 1 year, you may have to recapture the instructions for the tax return with
on property held 1 year or less, and part or all of the gain as ordinary income. which this form is filed.
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