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Can 1040x Be Filed Electronically

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Can 1040x Be Filed Electronically

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

Can 1040x be filed electronically 4. Can 1040x be filed electronically   Reporting Gains and Losses Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Information Returns Schedule D and Form 8949Long and Short Term Net Gain or Loss Treatment of Capital Losses Capital Gains Tax Rates Form 4797Mark-to-market election. Can 1040x be filed electronically Introduction This chapter explains how to report capital gains and losses and ordinary gains and losses from sales, exchanges, and other dispositions of property. Can 1040x be filed electronically Although this discussion refers to Schedule D (Form 1040) and Form 8949, many of the rules discussed here also apply to taxpayers other than individuals. Can 1040x be filed electronically However, the rules for property held for personal use usually will not apply to taxpayers other than individuals. Can 1040x be filed electronically Topics - This chapter discusses: Information returns Schedule D (Form 1040) Form 4797 Form 8949 Useful Items - You may want to see: Publication 550 Investment Income and Expenses 537 Installment Sales Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 1099-B Proceeds From Broker and Barter Exchange Transactions 1099-S Proceeds From Real Estate Transactions 4684 Casualties and Thefts 4797 Sales of Business Property 6252 Installment Sale Income 6781 Gains and Losses from Section 1256 Contracts and Straddles 8824 Like-Kind Exchanges 8949 Sales and Other Dispositions of Capital Assets See chapter 5 for information about getting publications and forms. Can 1040x be filed electronically Information Returns If you sell or exchange certain assets, you should receive an information return showing the proceeds of the sale. Can 1040x be filed electronically This information is also provided to the IRS. Can 1040x be filed electronically Form 1099-B. Can 1040x be filed electronically   If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a substitute statement from the broker. Can 1040x be filed electronically Use the Form 1099-B or a substitute statement to complete Form 8949 and/or Schedule D. Can 1040x be filed electronically Whether or not you receive 1099-B, you must report all taxable sales of stock, bonds, commodities, etc. Can 1040x be filed electronically on Form 8949 and/or Schedule D, as applicable. Can 1040x be filed electronically For more information on figuring gains and losses from these transactions, see chapter 4 in Publication 550. Can 1040x be filed electronically For information on reporting the gains and losses, see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). Can 1040x be filed electronically Form 1099-S. Can 1040x be filed electronically   An information return must be provided on certain real estate transactions. Can 1040x be filed electronically Generally, the person responsible for closing the transaction (the “real estate reporting person”) must report on Form 1099-S sales or exchanges of the following types of property. Can 1040x be filed electronically Land (improved or unimproved), including air space. Can 1040x be filed electronically An inherently permanent structure, including any residential, commercial, or industrial building. Can 1040x be filed electronically A condominium unit and its related fixtures and common elements (including land). Can 1040x be filed electronically Stock in a cooperative housing corporation. Can 1040x be filed electronically If you sold or exchanged any of the above types of property, the “real estate reporting person” must give you a copy of Form 1099-S or a statement containing the same information as the Form 1099-S. Can 1040x be filed electronically The “real estate reporting person” could include the buyer's attorney, your attorney, the title or escrow company, a mortgage lender, your broker, the buyer's broker, or the person acquiring the biggest interest in the property. Can 1040x be filed electronically   For more information see chapter 4 in Publication 550. Can 1040x be filed electronically Also, see the Instructions for Form 8949. Can 1040x be filed electronically Schedule D and Form 8949 Form 8949. Can 1040x be filed electronically   Individuals, corporations, and partnerships, use Form 8949 to report the following. Can 1040x be filed electronically    Sales or exchanges of capital assets, including stocks, bonds, etc. Can 1040x be filed electronically , and real estate (if not reported on another form or schedule such as Form 4684, 4797, 6252, 6781, or 8824). Can 1040x be filed electronically Include these transactions even if you did not receive a Form 1099-B or 1099-S. Can 1040x be filed electronically Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit. Can 1040x be filed electronically Nonbusiness bad debts. Can 1040x be filed electronically   Individuals, If you are filing a joint return, complete as many copies of Form 8949 as you need to report all of your and your spouse's transactions. Can 1040x be filed electronically You and your spouse may list your transactions on separate forms or you may combine them. Can 1040x be filed electronically However, you must include on your Schedule D the totals from all Forms 8949 for both you and your spouse. Can 1040x be filed electronically    Corporations and electing large partnerships also use Form 8949 to report their share of gain or loss from a partnership, S Corporation, estate or trust. Can 1040x be filed electronically   Business entities meeting certain criteria, may have an exception to some of the normal requirements for completing Form 8949. Can 1040x be filed electronically See the Instructions for Form 8949. Can 1040x be filed electronically Schedule D. Can 1040x be filed electronically    Use Schedule D (Form 1040) to figure the overall gain or loss from transactions reported on Form 8949, and to report certain transactions you do not have to report on Form 8949. Can 1040x be filed electronically Before completing Schedule D, you may have to complete other forms as shown below. Can 1040x be filed electronically    Complete all applicable lines of Form 8949 before completing lines 1b, 2, 3, 8b, 9, or 10 of your applicable Schedule D. Can 1040x be filed electronically Enter on Schedule D the combined totals from all your Forms 8949. Can 1040x be filed electronically For a sale, exchange, or involuntary conversion of business property, complete Form 4797 (discussed later). Can 1040x be filed electronically For a like-kind exchange, complete Form 8824. Can 1040x be filed electronically See Reporting the exchange under Like-Kind Exchanges in chapter 1. Can 1040x be filed electronically For an installment sale, complete Form 6252. Can 1040x be filed electronically See Publication 537. Can 1040x be filed electronically For an involuntary conversion due to casualty or theft, complete Form 4684. Can 1040x be filed electronically See Publication 547, Casualties, Disasters, and Thefts. Can 1040x be filed electronically For a disposition of an interest in, or property used in, an activity to which the at-risk rules apply, complete Form 6198, At-Risk Limitations. Can 1040x be filed electronically See Publication 925, Passive Activity and At-Risk Rules. Can 1040x be filed electronically For a disposition of an interest in, or property used in, a passive activity, complete Form 8582, Passive Activity Loss Limitations. Can 1040x be filed electronically See Publication 925. Can 1040x be filed electronically For gains and losses from section 1256 contracts and straddles, complete Form 6781. Can 1040x be filed electronically See Publication 550. Can 1040x be filed electronically Personal-use property. Can 1040x be filed electronically   Report gain on the sale or exchange of property held for personal use (such as your home) on Form 8949 and Schedule D (Form 1040), as applicable. Can 1040x be filed electronically Loss from the sale or exchange of property held for personal use is not deductible. Can 1040x be filed electronically But if you had a loss from the sale or exchange of real estate held for personal use for which you received a Form 1099-S, report the transaction on Form 8949 and Schedule D, even though the loss is not deductible. Can 1040x be filed electronically See the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949 for information on how to report the transaction. Can 1040x be filed electronically Long and Short Term Where you report a capital gain or loss depends on how long you own the asset before you sell or exchange it. Can 1040x be filed electronically The time you own an asset before disposing of it is the holding period. Can 1040x be filed electronically If you received a Form 1099-B, (or substitute statement) box 1c may help you determine whether the gain or loss is short-term or long-term. Can 1040x be filed electronically If you hold a capital asset 1 year or less, the gain or loss from its disposition is short term. Can 1040x be filed electronically Report it in Part I of Form 8949 and/or Schedule D, as applicable. Can 1040x be filed electronically If you hold a capital asset longer than 1 year, the gain or loss from its disposition is long term. Can 1040x be filed electronically Report it in Part II of Form 8949 and/or Schedule D, as applicable. Can 1040x be filed electronically   Table 4-1. Can 1040x be filed electronically Do I Have a Short-Term or Long-Term Gain or Loss? IF you hold the property. Can 1040x be filed electronically . Can 1040x be filed electronically . Can 1040x be filed electronically  THEN you have a. Can 1040x be filed electronically . Can 1040x be filed electronically . Can 1040x be filed electronically 1 year or less, Short-term capital gain or  loss. Can 1040x be filed electronically More than 1 year, Long-term capital gain or  loss. Can 1040x be filed electronically These distinctions are essential to correctly arrive at your net capital gain or loss. Can 1040x be filed electronically Capital losses are allowed in full against capital gains plus up to $3,000 of ordinary income. Can 1040x be filed electronically See Capital Gains Tax Rates, later. Can 1040x be filed electronically Holding period. Can 1040x be filed electronically   To figure if you held property longer than 1 year, start counting on the day following the day you acquired the property. Can 1040x be filed electronically The day you disposed of the property is part of your holding period. Can 1040x be filed electronically Example. Can 1040x be filed electronically If you bought an asset on June 19, 2012, you should start counting on June 20, 2012. Can 1040x be filed electronically If you sold the asset on June 19, 2013, your holding period is not longer than 1 year, but if you sold it on June 20, 2013, your holding period is longer than 1 year. Can 1040x be filed electronically Patent property. Can 1040x be filed electronically   If you dispose of patent property, you generally are considered to have held the property longer than 1 year, no matter how long you actually held it. Can 1040x be filed electronically For more information, see Patents in chapter 2. Can 1040x be filed electronically Inherited property. Can 1040x be filed electronically   If you inherit property, you are considered to have held the property longer than 1 year, regardless of how long you actually held it. Can 1040x be filed electronically Installment sale. Can 1040x be filed electronically   The gain from an installment sale of an asset qualifying for long-term capital gain treatment in the year of sale continues to be long term in later tax years. Can 1040x be filed electronically If it is short term in the year of sale, it continues to be short term when payments are received in later tax years. Can 1040x be filed electronically    The date the installment payment is received determines the capital gains rate that should be applied not the date the asset was sold under an installment contract. Can 1040x be filed electronically Nontaxable exchange. Can 1040x be filed electronically   If you acquire an asset in exchange for another asset and your basis for the new asset is figured, in whole or in part, by using your basis in the old property, the holding period of the new property includes the holding period of the old property. Can 1040x be filed electronically That is, it begins on the same day as your holding period for the old property. Can 1040x be filed electronically Example. Can 1040x be filed electronically You bought machinery on December 4, 2012. Can 1040x be filed electronically On June 4, 2013, you traded this machinery for other machinery in a nontaxable exchange. Can 1040x be filed electronically On December 5, 2013, you sold the machinery you got in the exchange. Can 1040x be filed electronically Your holding period for this machinery began on December 5, 2012. Can 1040x be filed electronically Therefore, you held it longer than 1 year. Can 1040x be filed electronically Corporate liquidation. Can 1040x be filed electronically   The holding period for property you receive in a liquidation generally starts on the day after you receive it if gain or loss is recognized. Can 1040x be filed electronically Profit-sharing plan. Can 1040x be filed electronically   The holding period of common stock withdrawn from a qualified contributory profit-sharing plan begins on the day following the day the plan trustee delivered the stock to the transfer agent with instructions to reissue the stock in your name. Can 1040x be filed electronically Gift. Can 1040x be filed electronically   If you receive a gift of property and your basis in it is figured using the donor's basis, your holding period includes the donor's holding period. Can 1040x be filed electronically For more information on basis, see Publication 551, Basis of Assets. Can 1040x be filed electronically Real property. Can 1040x be filed electronically   To figure how long you held real property, start counting on the day after you received title to it or, if earlier, the day after you took possession of it and assumed the burdens and privileges of ownership. Can 1040x be filed electronically   However, taking possession of real property under an option agreement is not enough to start the holding period. Can 1040x be filed electronically The holding period cannot start until there is an actual contract of sale. Can 1040x be filed electronically The holding period of the seller cannot end before that time. Can 1040x be filed electronically Repossession. Can 1040x be filed electronically   If you sell real property but keep a security interest in it and then later repossess it, your holding period for a later sale includes the period you held the property before the original sale, as well as the period after the repossession. Can 1040x be filed electronically Your holding period does not include the time between the original sale and the repossession. Can 1040x be filed electronically That is, it does not include the period during which the first buyer held the property. Can 1040x be filed electronically Nonbusiness bad debts. Can 1040x be filed electronically   Nonbusiness bad debts are short-term capital losses. Can 1040x be filed electronically For information on nonbusiness bad debts, see chapter 4 of Publication 550. Can 1040x be filed electronically    Net Gain or Loss The totals for short-term capital gains and losses and the totals for long-term capital gains and losses must be figured separately. Can 1040x be filed electronically Net short-term capital gain or loss. Can 1040x be filed electronically   Combine your short-term capital gains and losses, including your share of short-term capital gains or losses from partnerships, S corporations, and fiduciaries and any short-term capital loss carryover. Can 1040x be filed electronically Do this by adding all your short-term capital gains. Can 1040x be filed electronically Then add all your short-term capital losses. Can 1040x be filed electronically Subtract the lesser total from the other. Can 1040x be filed electronically The result is your net short-term capital gain or loss. Can 1040x be filed electronically Net long-term capital gain or loss. Can 1040x be filed electronically   Follow the same steps to combine your long-term capital gains and losses. Can 1040x be filed electronically Include the following items. Can 1040x be filed electronically Net section 1231 gain from Part I, Form 4797, after any adjustment for nonrecaptured section 1231 losses from prior tax years. Can 1040x be filed electronically Capital gain distributions from regulated investment companies (mutual funds) and real estate investment trusts. Can 1040x be filed electronically Your share of long-term capital gains or losses from partnerships, S corporations, and fiduciaries. Can 1040x be filed electronically Any long-term capital loss carryover. Can 1040x be filed electronically The result from combining these items with other long-term capital gains and losses is your net long-term capital gain or loss. Can 1040x be filed electronically Net gain. Can 1040x be filed electronically   If the total of your capital gains is more than the total of your capital losses, the difference is taxable. Can 1040x be filed electronically Different tax rates may apply to the part that is a net capital gain. Can 1040x be filed electronically See Capital Gains Tax Rates, later. Can 1040x be filed electronically Net loss. Can 1040x be filed electronically   If the total of your capital losses is more than the total of your capital gains, the difference is deductible. Can 1040x be filed electronically But there are limits on how much loss you can deduct and when you can deduct it. Can 1040x be filed electronically See Treatment of Capital Losses, next. Can 1040x be filed electronically    Treatment of Capital Losses If your capital losses are more than your capital gains, you can deduct the difference as a capital loss deduction even if you do not have ordinary income to offset it. Can 1040x be filed electronically The yearly limit on the amount of the capital loss you can deduct is $3,000 ($1,500 if you are married and file a separate return). Can 1040x be filed electronically Table 4-2. Can 1040x be filed electronically Holding Period for Different Types of Acquisitions Type of acquisition: When your holding period starts: Stocks and bonds bought on a securities market Day after trading date you bought security. Can 1040x be filed electronically Ends on trading date you sold security. Can 1040x be filed electronically U. Can 1040x be filed electronically S. Can 1040x be filed electronically Treasury notes and bonds If bought at auction, day after notification of bid acceptance. Can 1040x be filed electronically If bought through subscription, day after subscription was submitted. Can 1040x be filed electronically Nontaxable exchanges Day after date you acquired old property. Can 1040x be filed electronically Gift If your basis is giver's adjusted basis, same day as giver's holding period began. Can 1040x be filed electronically If your basis is FMV, day after date of gift. Can 1040x be filed electronically Real property bought Generally, day after date you received title to the property. Can 1040x be filed electronically Real property repossessed Day after date you originally received title to the property, but does not include time between the original sale and date of repossession. Can 1040x be filed electronically Capital loss carryover. Can 1040x be filed electronically   Generally, you have a capital loss carryover if either of the following situations applies to you. Can 1040x be filed electronically Your net loss is more than the yearly limit. Can 1040x be filed electronically Your taxable income without your deduction for exemptions is less than zero. Can 1040x be filed electronically If either of these situations applies to you for 2013, see Capital Losses under Reporting Capital Gains and Losses in chapter 4 of Publication 550 to figure the amount you can carryover to 2014. Can 1040x be filed electronically Example. Can 1040x be filed electronically Bob and Gloria Sampson sold property in 2013. Can 1040x be filed electronically The sale resulted in a capital loss of $7,000. Can 1040x be filed electronically The Sampsons had no other capital transactions. Can 1040x be filed electronically On their joint 2013 return, the Sampsons deduct $3,000, the yearly limit. Can 1040x be filed electronically They had taxable income of $2,000. Can 1040x be filed electronically The unused part of the loss, $4,000 ($7,000 − $3,000), is carried over to 2014. Can 1040x be filed electronically If the Sampsons' capital loss had been $2,000, it would not have been more than the yearly limit. Can 1040x be filed electronically Their capital loss deduction would have been $2,000. Can 1040x be filed electronically They would have no carryover to 2014. Can 1040x be filed electronically Short-term and long-term losses. Can 1040x be filed electronically   When you carry over a loss, it retains its original character as either long term or short term. Can 1040x be filed electronically A short-term loss you carry over to the next tax year is added to short-term losses occurring in that year. Can 1040x be filed electronically A long-term loss you carry over to the next tax year is added to long-term losses occurring in that year. Can 1040x be filed electronically A long-term capital loss you carry over to the next year reduces that year's long-term gains before its short-term gains. Can 1040x be filed electronically   If you have both short-term and long-term losses, your short-term losses are used first against your allowable capital loss deduction. Can 1040x be filed electronically If, after using your short-term losses, you have not reached the limit on the capital loss deduction, use your long-term losses until you reach the limit. Can 1040x be filed electronically To figure your capital loss carryover from 2013 to 2014 use the Capital Loss Carryover Worksheet in the 2013 Instructions for Schedule D (Form 1040). Can 1040x be filed electronically Joint and separate returns. Can 1040x be filed electronically   On a joint return, the capital gains and losses of spouses are figured as the gains and losses of an individual. Can 1040x be filed electronically If you are married and filing a separate return, your yearly capital loss deduction is limited to $1,500. Can 1040x be filed electronically Neither you nor your spouse can deduct any part of the other's loss. Can 1040x be filed electronically   If you and your spouse once filed separate returns and are now filing a joint return, combine your separate capital loss carryovers. Can 1040x be filed electronically However, if you and your spouse once filed jointly and are now filing separately, any capital loss carryover from the joint return can be deducted only on the return of the spouse who actually had the loss. Can 1040x be filed electronically Death of taxpayer. Can 1040x be filed electronically   Capital losses cannot be carried over after a taxpayer's death. Can 1040x be filed electronically They are deductible only on the final income tax return filed on the decedent's behalf. Can 1040x be filed electronically The yearly limit discussed earlier still applies in this situation. Can 1040x be filed electronically Even if the loss is greater than the limit, the decedent's estate cannot deduct the difference or carry it over to following years. Can 1040x be filed electronically Corporations. Can 1040x be filed electronically   A corporation can deduct capital losses only up to the amount of its capital gains. Can 1040x be filed electronically In other words, if a corporation has a net capital loss, it cannot be deducted in the current tax year. Can 1040x be filed electronically It must be carried to other tax years and deducted from capital gains occurring in those years. Can 1040x be filed electronically For more information, see Publication 542. Can 1040x be filed electronically Capital Gains Tax Rates The tax rates that apply to a net capital gain are generally lower than the tax rates that apply to other income. Can 1040x be filed electronically These lower rates are called the maximum capital gains rates. Can 1040x be filed electronically The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. Can 1040x be filed electronically For 2013, the maximum tax rates for individuals are 0%, 15%, 20%, 25%, and 28%. Can 1040x be filed electronically Also, individuals, use the Qualified Dividends and Capital Gain Worksheet in the Instructions for Form 1040, or the Schedule D Tax Computation Worksheet in the Instructions for Schedule D (Form 1040) (whichever applies) to figure your tax if you have qualified dividends or net capital gain. Can 1040x be filed electronically For more information, see chapter 4 of Publication 550. Can 1040x be filed electronically Also see the Instructions for Schedule D (Form 1040). Can 1040x be filed electronically Unrecaptured section 1250 gain. Can 1040x be filed electronically   Generally, this is the part of any long-term capital gain on section 1250 property (real property) that is due to depreciation. Can 1040x be filed electronically Unrecaptured section 1250 gain cannot be more than the net section 1231 gain or include any gain otherwise treated as ordinary income. Can 1040x be filed electronically Use the worksheet in the Schedule D instructions to figure your unrecaptured section 1250 gain. Can 1040x be filed electronically For more information about section 1250 property and net section 1231 gain, see chapter 3. Can 1040x be filed electronically Form 4797 Use Form 4797 to report: The sale or exchange of: Property used in your trade or business; Depreciable and amortizable property; Oil, gas, geothermal, or other mineral properties; and Section 126 property. Can 1040x be filed electronically The involuntary conversion (from other than casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. Can 1040x be filed electronically The disposition of noncapital assets (other than inventory or property held primarily for sale to customers in the ordinary course of your trade or business). Can 1040x be filed electronically The disposition of capital assets not reported on Schedule D. Can 1040x be filed electronically The gain or loss (including any related recapture) for partners and S corporation shareholders from certain section 179 property dispositions by partnerships (other than electing large partnerships) and S corporations. Can 1040x be filed electronically The computation of recapture amounts under sections 179 and 280F(b)(2) when the business use of section 179 or listed property decreases to 50% or less. Can 1040x be filed electronically Gains or losses treated as ordinary gains or losses, if you are a trader in securities or commodities and made a mark-to-market election under Internal Revenue Code section 475(f). Can 1040x be filed electronically You can use Form 4797 with Form 1040, 1065, 1120, or 1120S. Can 1040x be filed electronically Section 1231 gains and losses. Can 1040x be filed electronically   Show any section 1231 gains and losses in Part I. Can 1040x be filed electronically Carry a net gain to Schedule D (Form 1040) as a long-term capital gain. Can 1040x be filed electronically Carry a net loss to Part II of Form 4797 as an ordinary loss. Can 1040x be filed electronically   If you had any nonrecaptured net section 1231 losses from the preceding 5 tax years, reduce your net gain by those losses and report the amount of the reduction as an ordinary gain in Part II. Can 1040x be filed electronically Report any remaining gain on Schedule D (Form 1040). Can 1040x be filed electronically See Section 1231 Gains and Losses in chapter 3. Can 1040x be filed electronically Ordinary gains and losses. Can 1040x be filed electronically   Show any ordinary gains and losses in Part II. Can 1040x be filed electronically This includes a net loss or a recapture of losses from prior years figured in Part I of Form 4797. Can 1040x be filed electronically It also includes ordinary gain figured in Part III. Can 1040x be filed electronically Mark-to-market election. Can 1040x be filed electronically   If you made a mark-to-market election, you should report all gains and losses from trading as ordinary gains and losses in Part II of Form 4797, instead of as capital gains and losses on Form 8949 and Schedule D (Form 1040). Can 1040x be filed electronically See the Instructions for Form 4797. Can 1040x be filed electronically Also see Special Rules for Traders in Securities, in chapter 4 of Publication 550. Can 1040x be filed electronically Ordinary income from depreciation. Can 1040x be filed electronically   Figure the ordinary income from depreciation on personal property and additional depreciation on real property (as discussed in chapter 3) in Part III. Can 1040x be filed electronically Carry the ordinary income to Part II of Form 4797 as an ordinary gain. Can 1040x be filed electronically Carry any remaining gain to Part I as section 1231 gain, unless it is from a casualty or theft. Can 1040x be filed electronically Carry any remaining gain from a casualty or theft to Form 4684. Can 1040x be filed electronically Prev  Up  Next   Home   More Online Publications