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File My Taxes For 2012

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File My Taxes For 2012

File my taxes for 2012 25. File my taxes for 2012   Nonbusiness Casualty and Theft Losses Table of Contents What's New Introduction Useful Items - You may want to see: CasualtyFamily pet. File my taxes for 2012 Progressive deterioration. File my taxes for 2012 Damage from corrosive drywall. File my taxes for 2012 Theft Loss on Deposits Proof of Loss Figuring a LossDecrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Single Casualty on Multiple Properties Deduction Limits$100 Rule 10% Rule When To Report Gains and LossesDisaster Area Loss How To Report Gains and Losses What's New New Section C of Form 4684 for Ponzi-type investment schemes. File my taxes for 2012  Section C of Form 4684 is new for 2013. File my taxes for 2012 You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. File my taxes for 2012 Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. File my taxes for 2012 You do not need to complete Appendix A. File my taxes for 2012 For details, see Losses from Ponzi-type investment schemes , in this chapter. File my taxes for 2012 Introduction This chapter explains the tax treatment of personal (not business or investment related) casualty losses, theft losses, and losses on deposits. File my taxes for 2012 The chapter also explains the following  topics. File my taxes for 2012 How to figure the amount of your loss. File my taxes for 2012 How to treat insurance and other reimbursements you receive. File my taxes for 2012 The deduction limits. File my taxes for 2012 When and how to report a casualty or theft. File my taxes for 2012 Forms to file. File my taxes for 2012    When you have a casualty or theft, you have to file Form 4684. File my taxes for 2012 You will also have to file one or more of the following forms. File my taxes for 2012 Schedule A (Form 1040), Itemized Deductions Schedule D (Form 1040), Capital Gains and Losses Condemnations. File my taxes for 2012   For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Disposition of Assets. File my taxes for 2012 Workbook for casualties and thefts. File my taxes for 2012    Publication 584 is available to help you make a list of your stolen or damaged personal-use property and figure your loss. File my taxes for 2012 It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. File my taxes for 2012 Business or investment-related losses. File my taxes for 2012   For information on a casualty or theft loss of business or income-producing property, see Publication 547, Casualties, Disasters, and Thefts. File my taxes for 2012 Useful Items - You may want to see: Publication 544 Sales and Other Dispositions  of Assets 547 Casualties, Disasters, and   Thefts 584 Casualty, Disaster, and Theft   Loss Workbook (Personal-Use  Property) Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule D (Form 1040) Capital Gains and Losses 4684 Casualties and Thefts Casualty A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. File my taxes for 2012 A sudden event is one that is swift, not gradual or progressive. File my taxes for 2012 An unexpected event is one that is ordinarily unanticipated and unintended. File my taxes for 2012 An unusual event is one that is not a day-to-day occurrence and that is not typical of the activity in which you were engaged. File my taxes for 2012 Deductible losses. File my taxes for 2012   Deductible casualty losses can result from a number of different causes, including the following. File my taxes for 2012 Car accidents (but see Nondeductible losses , next, for exceptions). File my taxes for 2012 Earthquakes. File my taxes for 2012 Fires (but see Nondeductible losses , next, for exceptions). File my taxes for 2012 Floods. File my taxes for 2012 Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses in Publication 547. File my taxes for 2012 Mine cave-ins. File my taxes for 2012 Shipwrecks. File my taxes for 2012 Sonic booms. File my taxes for 2012 Storms, including hurricanes and tornadoes. File my taxes for 2012 Terrorist attacks. File my taxes for 2012 Vandalism. File my taxes for 2012 Volcanic eruptions. File my taxes for 2012 Nondeductible losses. File my taxes for 2012   A casualty loss is not deductible if the damage or destruction is caused by the following. File my taxes for 2012 Accidentally breaking articles such as glassware or china under normal conditions. File my taxes for 2012 A family pet (explained below). File my taxes for 2012 A fire if you willfully set it or pay someone else to set it. File my taxes for 2012 A car accident if your willful negligence or willful act caused it. File my taxes for 2012 The same is true if the willful act or willful negligence of someone acting for you caused the accident. File my taxes for 2012 Progressive deterioration (explained later). File my taxes for 2012 Family pet. File my taxes for 2012   Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed earlier under Casualty are met. File my taxes for 2012 Example. File my taxes for 2012 Your antique oriental rug was damaged by your new puppy before it was housebroken. File my taxes for 2012 Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss. File my taxes for 2012 Progressive deterioration. File my taxes for 2012    Loss of property due to progressive deterioration is not deductible as a casualty loss. File my taxes for 2012 This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. File my taxes for 2012 The following are examples of damage due to progressive deterioration. File my taxes for 2012 The steady weakening of a building due to normal wind and weather conditions. File my taxes for 2012 The deterioration and damage to a water heater that bursts. File my taxes for 2012 However, the rust and water damage to rugs and drapes caused by the bursting of a water heater does qualify as a casualty. File my taxes for 2012 Most losses of property caused by droughts. File my taxes for 2012 To be deductible, a drought-related loss generally must be incurred in a trade or business or in a transaction entered into for profit. File my taxes for 2012 Termite or moth damage. File my taxes for 2012 The damage or destruction of trees, shrubs, or other plants by a fungus, disease, insects, worms, or similar pests. File my taxes for 2012 However, a sudden destruction due to an unexpected or unusual infestation of beetles or other insects may result in a casualty loss. File my taxes for 2012 Damage from corrosive drywall. File my taxes for 2012   Under a special procedure, you may be able to claim a casualty loss deduction for amounts you paid to repair damage to your home and household appliances that resulted from corrosive drywall. File my taxes for 2012 For details, see Publication 547. File my taxes for 2012 Theft A theft is the taking and removing of money or property with the intent to deprive the owner of it. File my taxes for 2012 The taking of property must be illegal under the laws of the state where it occurred and it must have been done with criminal intent. File my taxes for 2012 You do not need to show a conviction for theft. File my taxes for 2012 Theft includes the taking of money or property by the following means. File my taxes for 2012 Blackmail. File my taxes for 2012 Burglary. File my taxes for 2012 Embezzlement. File my taxes for 2012 Extortion. File my taxes for 2012 Kidnapping for ransom. File my taxes for 2012 Larceny. File my taxes for 2012 Robbery. File my taxes for 2012 The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. File my taxes for 2012 Decline in market value of stock. File my taxes for 2012   You cannot deduct as a theft loss the decline in market value of stock acquired on the open market for investment if the decline is caused by disclosure of accounting fraud or other illegal misconduct by the officers or directors of the corporation that issued the stock. File my taxes for 2012 However, you can deduct as a capital loss the loss you sustain when you sell or exchange the stock or the stock becomes completely worthless. File my taxes for 2012 You report a capital loss on Schedule D (Form 1040). File my taxes for 2012 For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. File my taxes for 2012 Mislaid or lost property. File my taxes for 2012   The simple disappearance of money or property is not a theft. File my taxes for 2012 However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. File my taxes for 2012 Sudden, unexpected, and unusual events are defined earlier. File my taxes for 2012 Example. File my taxes for 2012 A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. File my taxes for 2012 The diamond falls from the ring and is never found. File my taxes for 2012 The loss of the diamond is a casualty. File my taxes for 2012 Losses from Ponzi-type investment schemes. File my taxes for 2012   If you had a loss from a Ponzi-type investment scheme, see: Revenue Ruling 2009-9, 2009-14 I. File my taxes for 2012 R. File my taxes for 2012 B. File my taxes for 2012 735 (available at www. File my taxes for 2012 irs. File my taxes for 2012 gov/irb/2009-14_IRB/ar07. File my taxes for 2012 html). File my taxes for 2012 Revenue Procedure 2009-20, 2009-14 I. File my taxes for 2012 R. File my taxes for 2012 B. File my taxes for 2012 749 (available at www. File my taxes for 2012 irs. File my taxes for 2012 gov/irb/2009-14_IRB/ar11. File my taxes for 2012 html). File my taxes for 2012 Revenue Procedure 2011-58, 2011-50 I. File my taxes for 2012 R. File my taxes for 2012 B. File my taxes for 2012 849 (available at www. File my taxes for 2012 irs. File my taxes for 2012 gov/irb/2011-50_IRB/ar11. File my taxes for 2012 html). File my taxes for 2012 If you qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, and you choose to follow the procedures in the guidance, first fill out Section C of Form 4684 to determine the amount to enter on Section B, line 28. File my taxes for 2012 Skip lines 19 to 27. File my taxes for 2012 Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. File my taxes for 2012 You do not need to complete Appendix A. File my taxes for 2012 For more information, see the above revenue ruling and revenue procedures, and the Instructions for Form 4684. File my taxes for 2012   If you choose not to use the procedures in Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate. File my taxes for 2012 Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. File my taxes for 2012 If you incurred this type of loss, you can choose one of the following ways to deduct the loss. File my taxes for 2012 As a casualty loss. File my taxes for 2012 As an ordinary loss. File my taxes for 2012 As a nonbusiness bad debt. File my taxes for 2012 Casualty loss or ordinary loss. File my taxes for 2012   You can choose to deduct a loss on deposits as a casualty loss or as an ordinary loss for any year in which you can reasonably estimate how much of your deposits you have lost in an insolvent or bankrupt financial institution. File my taxes for 2012 The choice is generally made on the return you file for that year and applies to all your losses on deposits for the year in that particular financial institution. File my taxes for 2012 If you treat the loss as a casualty or ordinary loss, you cannot treat the same amount of the loss as a nonbusiness bad debt when it actually becomes worthless. File my taxes for 2012 However, you can take a nonbusiness bad debt deduction for any amount of loss that is more than the estimated amount you deducted as a casualty or ordinary loss. File my taxes for 2012 Once you make this choice, you cannot change it without permission from the Internal Revenue Service. File my taxes for 2012   If you claim an ordinary loss, report it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. File my taxes for 2012 The maximum amount you can claim is $20,000 ($10,000 if you are married filing separately) reduced by any expected state insurance proceeds. File my taxes for 2012 Your loss is subject to the 2%-of-adjusted-gross-income limit. File my taxes for 2012 You cannot choose to claim an ordinary loss if any part of the deposit is federally insured. File my taxes for 2012 Nonbusiness bad debt. File my taxes for 2012   If you do not choose to deduct the loss as a casualty loss or as an ordinary loss, you must wait until the year the actual loss is determined and deduct the loss as a nonbusiness bad debt in that year. File my taxes for 2012 How to report. File my taxes for 2012   The kind of deduction you choose for your loss on deposits determines how you report your loss. File my taxes for 2012 If you choose: Casualty loss — report it on Form 4684 first and then on Schedule A (Form 1040). File my taxes for 2012 Ordinary loss — report it on Schedule A (Form 1040) as a miscellaneous itemized deduction. File my taxes for 2012 Nonbusiness bad debt — report it on Form 8949 first and then on Schedule D (Form 1040). File my taxes for 2012 More information. File my taxes for 2012   For more information, see Special Treatment for Losses on Deposits in Insolvent or Bankrupt Financial Institutions in the Instructions for Form 4684 or Deposit in Insolvent or Bankrupt Financial Institution in Publication 550. File my taxes for 2012 Proof of Loss To deduct a casualty or theft loss, you must be able to prove that you had a casualty or theft. File my taxes for 2012 You also must be able to support the amount you take as a deduction. File my taxes for 2012 Casualty loss proof. File my taxes for 2012   For a casualty loss, your records should show all the following. File my taxes for 2012 The type of casualty (car accident, fire, storm, etc. File my taxes for 2012 ) and when it occurred. File my taxes for 2012 That the loss was a direct result of the casualty. File my taxes for 2012 That you were the owner of the property or, if you leased the property from someone else, that you were contractually liable to the owner for the damage. File my taxes for 2012 Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. File my taxes for 2012 Theft loss proof. File my taxes for 2012   For a theft loss, your records should show all the following. File my taxes for 2012 When you discovered that your property was missing. File my taxes for 2012 That your property was stolen. File my taxes for 2012 That you were the owner of the property. File my taxes for 2012 Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. File my taxes for 2012 It is important that you have records that will prove your deduction. File my taxes for 2012 If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. File my taxes for 2012 Figuring a Loss Figure the amount of your loss using the following steps. File my taxes for 2012 Determine your adjusted basis in the property before the casualty or theft. File my taxes for 2012 Determine the decrease in fair market value of the property as a result of the casualty or theft. File my taxes for 2012 From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive. File my taxes for 2012 For personal-use property and property used in performing services as an employee, apply the deduction limits, discussed later, to determine the amount of your deductible loss. File my taxes for 2012 Gain from reimbursement. File my taxes for 2012   If your reimbursement is more than your adjusted basis in the property, you have a gain. File my taxes for 2012 This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. File my taxes for 2012 If you have a gain, you may have to pay tax on it, or you may be able to postpone reporting the gain. File my taxes for 2012 See Publication 547 for more information on how to treat a gain from a reimbursement for a casualty or theft. File my taxes for 2012 Leased property. File my taxes for 2012   If you are liable for casualty damage to property you lease, your loss is the amount you must pay to repair the property minus any insurance or other reimbursement you receive or expect to receive. File my taxes for 2012 Decrease in Fair Market Value Fair market value (FMV) is the price for which you could sell your property to a willing buyer when neither of you has to sell or buy and both of you know all the relevant facts. File my taxes for 2012 The decrease in FMV used to figure the amount of a casualty or theft loss is the difference between the property's fair market value immediately before and immediately after the casualty or theft. File my taxes for 2012 FMV of stolen property. File my taxes for 2012   The FMV of property immediately after a theft is considered to be zero, since you no longer have the property. File my taxes for 2012 Example. File my taxes for 2012 Several years ago, you purchased silver dollars at face value for $150. File my taxes for 2012 This is your adjusted basis in the property. File my taxes for 2012 Your silver dollars were stolen this year. File my taxes for 2012 The FMV of the coins was $1,000 just before they were stolen, and insurance did not cover them. File my taxes for 2012 Your theft loss is $150. File my taxes for 2012 Recovered stolen property. File my taxes for 2012   Recovered stolen property is your property that was stolen and later returned to you. File my taxes for 2012 If you recovered property after you had already taken a theft loss deduction, you must refigure your loss using the smaller of the property's adjusted basis (explained later) or the decrease in FMV from the time just before it was stolen until the time it was recovered. File my taxes for 2012 Use this amount to refigure your total loss for the year in which the loss was deducted. File my taxes for 2012   If your refigured loss is less than the loss you deducted, you generally have to report the difference as income in the recovery year. File my taxes for 2012 But report the difference only up to the amount of the loss that reduced your tax. File my taxes for 2012 For more information on the amount to report, see Recoveries in chapter 12. File my taxes for 2012 Figuring Decrease in FMV— Items To Consider To figure the decrease in FMV because of a casualty or theft, you generally need a competent appraisal. File my taxes for 2012 However, other measures can also be used to establish certain decreases. File my taxes for 2012 Appraisal. File my taxes for 2012   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterward should be made by a competent appraiser. File my taxes for 2012 The appraiser must recognize the effects of any general market decline that may occur along with the casualty. File my taxes for 2012 This information is needed to limit any deduction to the actual loss resulting from damage to the property. File my taxes for 2012   Several factors are important in evaluating the accuracy of an appraisal, including the following. File my taxes for 2012 The appraiser's familiarity with your property before and after the casualty or theft. File my taxes for 2012 The appraiser's knowledge of sales of comparable property in the area. File my taxes for 2012 The appraiser's knowledge of conditions in the area of the casualty. File my taxes for 2012 The appraiser's method of appraisal. File my taxes for 2012    You may be able to use an appraisal that you used to get a federal loan (or a federal loan guarantee) as the result of a federally declared disaster to establish the amount of your disaster loss. File my taxes for 2012 For more information on disasters, see Disaster Area Losses, in Pub. File my taxes for 2012 547. File my taxes for 2012 Cost of cleaning up or making repairs. File my taxes for 2012   The cost of repairing damaged property is not part of a casualty loss. File my taxes for 2012 Neither is the cost of cleaning up after a casualty. File my taxes for 2012 But you can use the cost of cleaning up or making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. File my taxes for 2012 The repairs are actually made. File my taxes for 2012 The repairs are necessary to bring the property back to its condition before the casualty. File my taxes for 2012 The amount spent for repairs is not excessive. File my taxes for 2012 The repairs take care of the damage only. File my taxes for 2012 The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. File my taxes for 2012 Landscaping. File my taxes for 2012   The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. File my taxes for 2012 You may be able to measure your loss by what you spend on the following. File my taxes for 2012 Removing destroyed or damaged trees and shrubs minus any salvage you receive. File my taxes for 2012 Pruning and other measures taken to preserve damaged trees and shrubs. File my taxes for 2012 Replanting necessary to restore the property to its approximate value before the casualty. File my taxes for 2012 Car value. File my taxes for 2012    Books issued by various automobile organizations that list your car may be useful in figuring the value of your car. File my taxes for 2012 You can use the book's retail values and modify them by such factors as mileage and the condition of your car to figure its value. File my taxes for 2012 The prices are not official, but they may be useful in determining value and suggesting relative prices for comparison with current sales and offerings in your area. File my taxes for 2012 If your car is not listed in the books, determine its value from other sources. File my taxes for 2012 A dealer's offer for your car as a trade-in on a new car is not usually a measure of its true value. File my taxes for 2012 Figuring Decrease in FMV— Items Not To Consider You generally should not consider the following items when attempting to establish the decrease in FMV of your property. File my taxes for 2012 Cost of protection. File my taxes for 2012   The cost of protecting your property against a casualty or theft is not part of a casualty or theft loss. File my taxes for 2012 The amount you spend on insurance or to board up your house against a storm is not part of your loss. File my taxes for 2012   If you make permanent improvements to your property to protect it against a casualty or theft, add the cost of these improvements to your basis in the property. File my taxes for 2012 An example would be the cost of a dike to prevent flooding. File my taxes for 2012 Exception. File my taxes for 2012   You cannot increase your basis in the property by, or deduct as a business expense, any expenditures you made with respect to qualified disaster mitigation payments. File my taxes for 2012 See Disaster Area Losses in Publication 547. File my taxes for 2012 Incidental expenses. File my taxes for 2012   Any incidental expenses you have due to a casualty or theft, such as expenses for the treatment of personal injuries, for temporary housing, or for a rental car, are not part of your casualty or theft loss. File my taxes for 2012 Replacement cost. File my taxes for 2012   The cost of replacing stolen or destroyed property is not part of a casualty or theft loss. File my taxes for 2012 Sentimental value. File my taxes for 2012   Do not consider sentimental value when determining your loss. File my taxes for 2012 If a family portrait, heirloom, or keepsake is damaged, destroyed, or stolen, you must base your loss on its FMV, as limited by your adjusted basis in the property. File my taxes for 2012 Decline in market value of property in or near casualty area. File my taxes for 2012   A decrease in the value of your property because it is in or near an area that suffered a casualty, or that might again suffer a casualty, is not to be taken into consideration. File my taxes for 2012 You have a loss only for actual casualty damage to your property. File my taxes for 2012 However, if your home is in a federally declared disaster area, see Disaster Area Losses in Publication 547. File my taxes for 2012 Costs of photographs and appraisals. File my taxes for 2012    Photographs taken after a casualty will be helpful in establishing the condition and value of the property after it was damaged. File my taxes for 2012 Photographs showing the condition of the property after it was repaired, restored, or replaced may also be helpful. File my taxes for 2012    Appraisals are used to figure the decrease in FMV because of a casualty or theft. File my taxes for 2012 See Appraisal , earlier, under Figuring Decrease in FMV — Items To Consider, for information about appraisals. File my taxes for 2012   The costs of photographs and appraisals used as evidence of the value and condition of property damaged as a result of a casualty are not a part of the loss. File my taxes for 2012 You can claim these costs as a miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income limit on Schedule A (Form 1040). File my taxes for 2012 For information about miscellaneous deductions, see chapter 28. File my taxes for 2012 Adjusted Basis Adjusted basis is your basis in the property (usually cost) increased or decreased by various events, such as improvements and casualty losses. File my taxes for 2012 For more information, see chapter 13. File my taxes for 2012 Insurance and Other Reimbursements If you receive an insurance payment or other type of reimbursement, you must subtract the reimbursement when you figure your loss. File my taxes for 2012 You do not have a casualty or theft loss to the extent you are reimbursed. File my taxes for 2012 If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. File my taxes for 2012 You must reduce your loss even if you do not receive payment until a later tax year. File my taxes for 2012 See Reimbursement Received After Deducting Loss , later. File my taxes for 2012 Failure to file a claim for reimbursement. File my taxes for 2012   If your property is covered by insurance, you must file a timely insurance claim for reimbursement of your loss. File my taxes for 2012 Otherwise, you cannot deduct this loss as a casualty or theft loss. File my taxes for 2012 However, this rule does not apply to the portion of the loss not covered by insurance (for example, a deductible). File my taxes for 2012 Example. File my taxes for 2012 You have a car insurance policy with a $1,000 deductible. File my taxes for 2012 Because your insurance did not cover the first $1,000 of an auto collision, the $1,000 would be deductible (subject to the deduction limits discussed later). File my taxes for 2012 This is true even if you do not file an insurance claim, because your insurance policy would never have reimbursed you for the deductible. File my taxes for 2012 Types of Reimbursements The most common type of reimbursement is an insurance payment for your stolen or damaged property. File my taxes for 2012 Other types of reimbursements are discussed next. File my taxes for 2012 Also see the Instructions for Form 4684. File my taxes for 2012 Employer's emergency disaster fund. File my taxes for 2012   If you receive money from your employer's emergency disaster fund and you must use that money to rehabilitate or replace property on which you are claiming a casualty loss deduction, you must take that money into consideration in computing the casualty loss deduction. File my taxes for 2012 Take into consideration only the amount you used to replace your destroyed or damaged property. File my taxes for 2012 Example. File my taxes for 2012 Your home was extensively damaged by a tornado. File my taxes for 2012 Your loss after reimbursement from your insurance company was $10,000. File my taxes for 2012 Your employer set up a disaster relief fund for its employees. File my taxes for 2012 Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. File my taxes for 2012 You received $4,000 from the fund and spent the entire amount on repairs to your home. File my taxes for 2012 In figuring your casualty loss, you must reduce your unreimbursed loss ($10,000) by the $4,000 you received from your employer's fund. File my taxes for 2012 Your casualty loss before applying the deduction limits discussed later is $6,000. File my taxes for 2012 Cash gifts. File my taxes for 2012   If you receive excludable cash gifts as a disaster victim and there are no limits on how you can use the money, you do not reduce your casualty loss by these excludable cash gifts. File my taxes for 2012 This applies even if you use the money to pay for repairs to property damaged in the disaster. File my taxes for 2012 Example. File my taxes for 2012 Your home was damaged by a hurricane. File my taxes for 2012 Relatives and neighbors made cash gifts to you that were excludable from your income. File my taxes for 2012 You used part of the cash gifts to pay for repairs to your home. File my taxes for 2012 There were no limits or restrictions on how you could use the cash gifts. File my taxes for 2012 Because it was an excludable gift, the money you received and used to pay for repairs to your home does not reduce your casualty loss on the damaged home. File my taxes for 2012 Insurance payments for living expenses. File my taxes for 2012   You do not reduce your casualty loss by insurance payments you receive to cover living expenses in either of the following situations. File my taxes for 2012 You lose the use of your main home because of a casualty. File my taxes for 2012 Government authorities do not allow you access to your main home because of a casualty or threat of one. File my taxes for 2012 Inclusion in income. File my taxes for 2012   If these insurance payments are more than the temporary increase in your living expenses, you must include the excess in your income. File my taxes for 2012 Report this amount on Form 1040, line 21. File my taxes for 2012 However, if the casualty occurs in a federally declared disaster area, none of the insurance payments are taxable. File my taxes for 2012 See Qualified disaster relief payments, under Disaster Area Losses in Publication 547. File my taxes for 2012   A temporary increase in your living expenses is the difference between the actual living expenses you and your family incurred during the period you could not use your home and your normal living expenses for that period. File my taxes for 2012 Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. File my taxes for 2012 Generally, these expenses include the amounts you pay for the following. File my taxes for 2012 Rent for suitable housing. File my taxes for 2012 Transportation. File my taxes for 2012 Food. File my taxes for 2012 Utilities. File my taxes for 2012 Miscellaneous services. File my taxes for 2012 Normal living expenses consist of these same expenses that you would have incurred but did not because of the casualty or the threat of one. File my taxes for 2012 Example. File my taxes for 2012 As a result of a fire, you vacated your apartment for a month and moved to a motel. File my taxes for 2012 You normally pay $525 a month for rent. File my taxes for 2012 None was charged for the month the apartment was vacated. File my taxes for 2012 Your motel rent for this month was $1,200. File my taxes for 2012 You normally pay $200 a month for food. File my taxes for 2012 Your food expenses for the month you lived in the motel were $400. File my taxes for 2012 You received $1,100 from your insurance company to cover your living expenses. File my taxes for 2012 You determine the payment you must include in income as follows. File my taxes for 2012 1) Insurance payment for living expenses $1,100 2) Actual expenses during the month you are unable to use your home because of fire 1,600   3) Normal living expenses 725   4) Temporary increase in living  expenses: Subtract line 3 from line 2 875 5) Amount of payment includible  in income: Subtract line 4  from line 1 $ 225 Tax year of inclusion. File my taxes for 2012   You include the taxable part of the insurance payment in income for the year you regain the use of your main home or, if later, for the year you receive the taxable part of the insurance payment. File my taxes for 2012 Example. File my taxes for 2012 Your main home was destroyed by a tornado in August 2011. File my taxes for 2012 You regained use of your home in November 2012. File my taxes for 2012 The insurance payments you received in 2011 and 2012 were $1,500 more than the temporary increase in your living expenses during those years. File my taxes for 2012 You include this amount in income on your 2012 Form 1040. File my taxes for 2012 If, in 2013, you receive further payments to cover the living expenses you had in 2011 and 2012, you must include those payments in income on your 2013 Form 1040. File my taxes for 2012 Disaster relief. File my taxes for 2012   Food, medical supplies, and other forms of assistance you receive do not reduce your casualty loss unless they are replacements for lost or destroyed property. File my taxes for 2012 Qualified disaster relief payments you receive for expenses you incurred as a result of a federally declared disaster are not taxable income to you. File my taxes for 2012 For more information, see Disaster Area Losses in Publication 547. File my taxes for 2012 Disaster unemployment assistance payments are unemployment benefits that are taxable. File my taxes for 2012 Generally, disaster relief grants and qualified disaster mitigation payments made under the Robert T. File my taxes for 2012 Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not includible in your income. File my taxes for 2012 See Disaster Area Losses in Publication 547. File my taxes for 2012 Reimbursement Received After Deducting Loss If you figured your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you receive your actual reimbursement. File my taxes for 2012 This section explains the adjustment you may have to make. File my taxes for 2012 Actual reimbursement less than expected. File my taxes for 2012   If you later receive less reimbursement than you expected, include that difference as a loss with your other losses (if any) on your return for the year in which you can reasonably expect no more reimbursement. File my taxes for 2012 Example. File my taxes for 2012 Your personal car had an FMV of $2,000 when it was destroyed in a collision with another car in 2012. File my taxes for 2012 The accident was due to the negligence of the other driver. File my taxes for 2012 At the end of 2012, there was a reasonable prospect that the owner of the other car would reimburse you in full. File my taxes for 2012 You did not have a deductible loss in 2012. File my taxes for 2012 In January 2013, the court awarded you a judgment of $2,000. File my taxes for 2012 However, in July it became apparent that you will be unable to collect any amount from the other driver. File my taxes for 2012 You can deduct the loss in 2013 subject to the limits discussed later. File my taxes for 2012 Actual reimbursement more than expected. File my taxes for 2012   If you later receive more reimbursement than you expected after you claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. File my taxes for 2012 However, if any part of the original deduction did not reduce your tax for the earlier year, do not include that part of the reimbursement in your income. File my taxes for 2012 You do not refigure your tax for the year you claimed the deduction. File my taxes for 2012 For more information, see Recoveries in chapter 12. File my taxes for 2012 If the total of all the reimbursements you receive is more than your adjusted basis in the destroyed or stolen property, you will have a gain on the casualty or theft. File my taxes for 2012 If you have already taken a deduction for a loss and you receive the reimbursement in a later year, you may have to include the gain in your income for the later year. File my taxes for 2012 Include the gain as ordinary income up to the amount of your deduction that reduced your tax for the earlier year. File my taxes for 2012 See Figuring a Gain in Publication 547 for more information on how to treat a gain from the reimbursement of a casualty or theft. File my taxes for 2012 Actual reimbursement same as expected. File my taxes for 2012   If you receive exactly the reimbursement you expected to receive, you do not have to include any of the reimbursement in your income and you cannot deduct any additional loss. File my taxes for 2012 Example. File my taxes for 2012 In December 2013, you had a collision while driving your personal car. File my taxes for 2012 Repairs to the car cost $950. File my taxes for 2012 You had $100 deductible collision insurance. File my taxes for 2012 Your insurance company agreed to reimburse you for the rest of the damage. File my taxes for 2012 Because you expected a reimbursement from the insurance company, you did not have a casualty loss deduction in 2013. File my taxes for 2012 Due to the $100 rule (discussed later under Deduction Limits ), you cannot deduct the $100 you paid as the deductible. File my taxes for 2012 When you receive the $850 from the insurance company in 2014, do not report it as income. File my taxes for 2012 Single Casualty on Multiple Properties Personal property. File my taxes for 2012   Personal property is any property that is not real property. File my taxes for 2012 If your personal property is stolen or is damaged or destroyed by a casualty, you must figure your loss separately for each item of property. File my taxes for 2012 Then combine these separate losses to figure the total loss from that casualty or theft. File my taxes for 2012 Example. File my taxes for 2012 A fire in your home destroyed an upholstered chair, an oriental rug, and an antique table. File my taxes for 2012 You did not have fire insurance to cover your loss. File my taxes for 2012 (This was the only casualty or theft you had during the year. File my taxes for 2012 ) You paid $750 for the chair and you established that it had an FMV of $500 just before the fire. File my taxes for 2012 The rug cost $3,000 and had an FMV of $2,500 just before the fire. File my taxes for 2012 You bought the table at an auction for $100 before discovering it was an antique. File my taxes for 2012 It had been appraised at $900 before the fire. File my taxes for 2012 You figure your loss on each of these items as follows:     Chair Rug Table 1) Basis (cost) $750 $3,000 $100 2) FMV before fire $500 $2,500 $900 3) FMV after fire –0– –0– –0– 4) Decrease in FMV $500 $2,500 $900 5) Loss (smaller of (1) or  (4)) $500 $2,500 $100           6) Total loss     $3,100 Real property. File my taxes for 2012   In figuring a casualty loss on personal-use real property, treat the entire property (including any improvements, such as buildings, trees, and shrubs) as one item. File my taxes for 2012 Figure the loss using the smaller of the adjusted basis or the decrease in FMV of the entire property. File my taxes for 2012 Example. File my taxes for 2012 You bought your home a few years ago. File my taxes for 2012 You paid $160,000 ($20,000 for the land and $140,000 for the house). File my taxes for 2012 You also spent $2,000 for landscaping. File my taxes for 2012 This year a fire destroyed your home. File my taxes for 2012 The fire also damaged the shrubbery and trees in your yard. File my taxes for 2012 The fire was your only casualty or theft loss this year. File my taxes for 2012 Competent appraisers valued the property as a whole at $200,000 before the fire, but only $30,000 after the fire. File my taxes for 2012 (The loss to your household furnishings is not shown in this example. File my taxes for 2012 It would be figured separately on each item, as explained earlier under Personal property . File my taxes for 2012 ) Shortly after the fire, the insurance company paid you $155,000 for the loss. File my taxes for 2012 You figure your casualty loss as follows: 1) Adjusted basis of the entire property (land, building, and landscaping) $162,000 2) FMV of entire property before fire $200,000 3) FMV of entire property after fire 30,000 4) Decrease in FMV of entire  property $170,000 5) Loss (smaller of (1) or (4)) $162,000 6) Subtract insurance 155,000 7) Amount of loss after reimbursement $7,000 Deduction Limits After you have figured your casualty or theft loss, you must figure how much of the loss you can deduct. File my taxes for 2012 If the loss was to property for your personal use or your family's use, there are two limits on the amount you can deduct for your casualty or theft loss. File my taxes for 2012 You must reduce each casualty or theft loss by $100 ($100 rule). File my taxes for 2012 You must further reduce the total of all your casualty or theft losses by 10% of your adjusted gross income (10% rule). File my taxes for 2012 You make these reductions on Form 4684. File my taxes for 2012 These rules are explained next and Table 25-1 summarizes how to apply the $100 rule and the 10% rule in various situations. File my taxes for 2012 For more detailed explanations and examples, see Publication 547. File my taxes for 2012 Table 25-1. File my taxes for 2012 How To Apply the Deduction Limits for Personal-Use Property   $100 Rule 10% Rule General Application You must reduce each casualty or theft loss by $100 when figuring your deduction. File my taxes for 2012 Apply this rule after you have figured the amount of your loss. File my taxes for 2012 You must reduce your total casualty or theft loss by 10% of your adjusted gross income. File my taxes for 2012 Apply this rule after you reduce each loss by $100 (the $100 rule). File my taxes for 2012 Single Event Apply this rule only once, even if many pieces of property are affected. File my taxes for 2012 Apply this rule only once, even if many pieces of property are affected. File my taxes for 2012 More Than One Event Apply to the loss from each event. File my taxes for 2012 Apply to the total of all your losses from all events. File my taxes for 2012 More Than One Person— With Loss From the Same Event (other than a married couple filing jointly) Apply separately to each person. File my taxes for 2012 Apply separately to each person. File my taxes for 2012 Married Couple—With Loss From the Same Event Filing Jointly Apply as if you were one person. File my taxes for 2012 Apply as if you were one person. File my taxes for 2012 Filing Separately Apply separately to each spouse. File my taxes for 2012 Apply separately to each spouse. File my taxes for 2012 More Than One Owner (other than a married couple filing jointly) Apply separately to each owner of jointly owned property. File my taxes for 2012 Apply separately to each owner of jointly owned property. File my taxes for 2012 Property used partly for business and partly for personal purposes. File my taxes for 2012   When property is used partly for personal purposes and partly for business or income-producing purposes, the casualty or theft loss deduction must be figured separately for the personal-use part and for the business or income-producing part. File my taxes for 2012 You must figure each loss separately because the $100 rule and the 10% rule apply only to the loss on the personal-use part of the property. File my taxes for 2012 $100 Rule After you have figured your casualty or theft loss on personal-use property, you must reduce that loss by $100. File my taxes for 2012 This reduction applies to each total casualty or theft loss. File my taxes for 2012 It does not matter how many pieces of property are involved in an event. File my taxes for 2012 Only a single $100 reduction applies. File my taxes for 2012 Example. File my taxes for 2012 A hailstorm damages your home and your car. File my taxes for 2012 Determine the amount of loss, as discussed earlier, for each of these items. File my taxes for 2012 Since the losses are due to a single event, you combine the losses and reduce the combined amount by $100. File my taxes for 2012 Single event. File my taxes for 2012   Generally, events closely related in origin cause a single casualty. File my taxes for 2012 It is a single casualty when the damage is from two or more closely related causes, such as wind and flood damage caused by the same storm. File my taxes for 2012 10% Rule You must reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. File my taxes for 2012 Apply this rule after you reduce each loss by $100. File my taxes for 2012 For more information, see the Form 4684 instructions. File my taxes for 2012 If you have both gains and losses from casualties or thefts, see Gains and losses , later in this discussion. File my taxes for 2012 Example 1. File my taxes for 2012 In June, you discovered that your house had been burglarized. File my taxes for 2012 Your loss after insurance reimbursement was $2,000. File my taxes for 2012 Your adjusted gross income for the year you discovered the theft is $29,500. File my taxes for 2012 You first apply the $100 rule and then the 10% rule. File my taxes for 2012 Figure your theft loss deduction as follows. File my taxes for 2012 1) Loss after insurance $2,000 2) Subtract $100 100 3) Loss after $100 rule $1,900 4) Subtract 10% × $29,500 AGI 2,950 5) Theft loss deduction –0– You do not have a theft loss deduction because your loss after you apply the $100 rule ($1,900) is less than 10% of your adjusted gross income ($2,950). File my taxes for 2012 Example 2. File my taxes for 2012 In March, you had a car accident that totally destroyed your car. File my taxes for 2012 You did not have collision insurance on your car, so you did not receive any insurance reimbursement. File my taxes for 2012 Your loss on the car was $1,800. File my taxes for 2012 In November, a fire damaged your basement and totally destroyed the furniture, washer, dryer, and other items stored there. File my taxes for 2012 Your loss on the basement items after reimbursement was $2,100. File my taxes for 2012 Your adjusted gross income for the year that the accident and fire occurred is $25,000. File my taxes for 2012 You figure your casualty loss deduction as follows. File my taxes for 2012       Base-     Car ment 1) Loss $1,800 $2,100 2) Subtract $100 per incident 100 100 3) Loss after $100 rule $1,700 $2,000 4) Total loss $3,700 5) Subtract 10% × $25,000 AGI 2,500 6) Casualty loss deduction $1,200 Gains and losses. File my taxes for 2012   If you had both gains and losses from casualties or thefts to personal-use property, you must compare your total gains to your total losses. File my taxes for 2012 Do this after you have reduced each loss by any reimbursements and by $100, but before you have reduced the losses by 10% of your adjusted gross income. File my taxes for 2012 Casualty or theft gains do not include gains you choose to postpone. File my taxes for 2012 See Publication 547 for information on the postponement of gain. File my taxes for 2012 Losses more than gains. File my taxes for 2012   If your losses are more than your recognized gains, subtract your gains from your losses and reduce the result by 10% of your adjusted gross income. File my taxes for 2012 The rest, if any, is your deductible loss from personal-use property. File my taxes for 2012 Gains more than losses. File my taxes for 2012   If your recognized gains are more than your losses, subtract your losses from your gains. File my taxes for 2012 The difference is treated as capital gain and must be reported on Schedule D (Form 1040). File my taxes for 2012 The 10% rule does not apply to your gains. File my taxes for 2012 When To Report Gains and Losses Gains. File my taxes for 2012   If you receive an insurance or other reimbursement that is more than your adjusted basis in the destroyed or stolen property, you have a gain from the casualty or theft. File my taxes for 2012 You must include this gain in your income in the year you receive the reimbursement, unless you choose to postpone reporting the gain as explained in Publication 547. File my taxes for 2012 If you have a loss, see Table 25-2 . File my taxes for 2012 Table 25-2. File my taxes for 2012 When To Deduct a Loss IF you have a loss. File my taxes for 2012 . File my taxes for 2012 . File my taxes for 2012 THEN deduct it in the year. File my taxes for 2012 . File my taxes for 2012 . File my taxes for 2012 from a casualty, the loss occurred. File my taxes for 2012 in a federally declared disaster area, the disaster occurred or the year immediately before the disaster. File my taxes for 2012 from a theft, the theft was discovered. File my taxes for 2012 on a deposit treated as a:   • casualty or any ordinary loss, a reasonable estimate can be made. File my taxes for 2012 • bad debt, deposits are totally worthless. File my taxes for 2012 Losses. File my taxes for 2012   Generally, you can deduct a casualty loss that is not reimbursable only in the tax year in which the casualty occurred. File my taxes for 2012 This is true even if you do not repair or replace the damaged property until a later year. File my taxes for 2012   You can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. File my taxes for 2012   If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become reasonably certain that it will not be reimbursed. File my taxes for 2012 Loss on deposits. File my taxes for 2012   If your loss is a loss on deposits in an insolvent or bankrupt financial institution, see Loss on Deposits , earlier. File my taxes for 2012 Disaster Area Loss You generally must deduct a casualty loss in the year it occurred. File my taxes for 2012 However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct the loss on your tax return or amended return for either of the following years. File my taxes for 2012 The year the disaster occurred. File my taxes for 2012 The year immediately preceding the year the disaster occurred. File my taxes for 2012 Gains. File my taxes for 2012    Special rules apply if you choose to postpone reporting gain on property damaged or destroyed in a federally declared disaster area. File my taxes for 2012 For those special rules, see Publication 547. File my taxes for 2012 Postponed tax deadlines. File my taxes for 2012   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. File my taxes for 2012 The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. File my taxes for 2012   If any tax deadline is postponed, the IRS will publicize the postponement in your area by publishing a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). File my taxes for 2012 Go to www. File my taxes for 2012 irs. File my taxes for 2012 gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. File my taxes for 2012 Who is eligible. File my taxes for 2012   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. File my taxes for 2012 Any individual whose main home is located in a covered disaster area (defined next). File my taxes for 2012 Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. File my taxes for 2012 Any individual who is a relief worker affiliated with a recognized government or philanthropic organization who is assisting in a covered disaster area. File my taxes for 2012 Any individual, business entity, or sole proprietorship whose records are needed to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. File my taxes for 2012 The main home or principal place of business does not have to be located in the covered disaster area. File my taxes for 2012 Any estate or trust that has tax records necessary to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. File my taxes for 2012 The spouse on a joint return with a taxpayer who is eligible for postponements. File my taxes for 2012 Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose records necessary to meet a postponed tax deadline are located in the covered disaster area. File my taxes for 2012 Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. File my taxes for 2012 Any other person determined by the IRS to be affected by a federally declared disaster. File my taxes for 2012 Covered disaster area. File my taxes for 2012   This is an area of a federally declared disaster in which the IRS has decided to postpone tax deadlines for up to 1 year. File my taxes for 2012 Abatement of interest and penalties. File my taxes for 2012   The IRS may abate the interest and penalties on underpaid income tax for the length of any postponement of tax deadlines. File my taxes for 2012 More information. File my taxes for 2012   For more information, see Disaster Area Losses in Publication 547. File my taxes for 2012 How To Report Gains and Losses Use Form 4684 to report a gain or a deductible loss from a casualty or theft. File my taxes for 2012 If you have more than one casualty or theft, use a separate Form 4684 to determine your gain or loss for each event. File my taxes for 2012 Combine the gains and losses on one Form 4684. File my taxes for 2012 Follow the form instructions as to which lines to fill out. File my taxes for 2012 In addition, you must use the appropriate schedule to report a gain or loss. File my taxes for 2012 The schedule you use depends on whether you have a gain or loss. File my taxes for 2012 If you have a: Report it on: Gain Schedule D (Form 1040) Loss Schedule A (Form 1040) Adjustments to basis. File my taxes for 2012   If you have a casualty or theft loss, you must decrease your basis in the property by any insurance or other reimbursement you receive, and by any deductible loss. File my taxes for 2012 Amounts you spend to restore your property after a casualty increase your adjusted basis. File my taxes for 2012 See Adjusted Basis in chapter 13 for more information. File my taxes for 2012 Net operating loss (NOL). File my taxes for 2012    If your casualty or theft loss deduction causes your deductions for the year to be more than your income for the year, you may have an NOL. File my taxes for 2012 You can use an NOL to lower your tax in an earlier year, allowing you to get a refund for tax you have already paid. File my taxes for 2012 Or, you can use it to lower your tax in a later year. File my taxes for 2012 You do not have to be in business to have an NOL from a casualty or theft loss. File my taxes for 2012 For more information, see Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. File my taxes for 2012 Prev  Up  Next   Home   More Online Publications
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File my taxes for 2012 Publication 527 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSale of main home used as rental property. File my taxes for 2012 Tax-free exchange of rental property occasionally used for personal purposes. File my taxes for 2012 Ordering forms and publications. File my taxes for 2012 Tax questions. File my taxes for 2012 Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 527, such as legislation enacted after it was published, go to www. File my taxes for 2012 irs. File my taxes for 2012 gov/pub527. File my taxes for 2012 What's New Net Investment Income Tax (NIIT). File my taxes for 2012  Beginning in 2013, you may be subject to the Net Investment Income Tax (NIIT). File my taxes for 2012 NIIT is a 3. File my taxes for 2012 8% tax on the lesser of net investment income or the excess of modified adjusted gross income (MAGI) over the threshold amount. File my taxes for 2012 Net investment income may include rental income and other income from passive activities. File my taxes for 2012 Use Form 8960, Net Investment Income Tax, to figure this tax. File my taxes for 2012 For more information on NIIT, go to IRS. File my taxes for 2012 gov and enter “Net Investment Income Tax” in the search box. File my taxes for 2012 Reminders Photographs of missing children. File my taxes for 2012  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. File my taxes for 2012 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. File my taxes for 2012 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. File my taxes for 2012 Introduction Do you own a second house that you rent out all the time? Do you own a vacation home that you rent out when you or your family isn't using it? These are two common types of residential rental activities discussed in this publication. File my taxes for 2012 In most cases, all rental income must be reported on your tax return, but there are differences in the expenses you are allowed to deduct and in the way the rental activity is reported on your return. File my taxes for 2012 First, this publication will look at the rental-for-profit activity in which there is no personal use of the property. File my taxes for 2012 We will look at types of income and when each is reported, and at types of expenses and which are deductible. File my taxes for 2012 Chapter 2 discusses depreciation as it applies to your rental real estate activity—what property can be depreciated and how to figure it. File my taxes for 2012 Chapter 3 covers the actual reporting of your rental income and deductions, including casualties and thefts, limitations on losses, and claiming the correct amount of depreciation. File my taxes for 2012 Special rental situations are grouped together in chapter 4. File my taxes for 2012 These include condominiums, cooperatives, property changed to rental use, renting only part of your property, and a not-for-profit rental activity. File my taxes for 2012 Finally, in chapter 5, we will look at the rules for rental income and expenses when there is also personal use of the dwelling unit, such as a vacation home. File my taxes for 2012 Sale or exchange of rental property. File my taxes for 2012   For information on how to figure and report any gain or loss from the sale, exchange or other disposition of your rental property, see Publication 544, Sales and Other Dispositions of Assets. File my taxes for 2012 Sale of main home used as rental property. File my taxes for 2012   For information on how to figure and report any gain or loss from the sale or other disposition of your main home that you also used as rental property, see Publication 523, Selling Your Home. File my taxes for 2012 Tax-free exchange of rental property occasionally used for personal purposes. File my taxes for 2012   If you meet certain qualifying use standards, you may qualify for a tax-free exchange (a like-kind or section 1031 exchange) of one piece of rental property you own for a similar piece of rental property, even if you have used the rental property for personal purposes. File my taxes for 2012   For information on the qualifying use standards, see Rev. File my taxes for 2012 Proc. File my taxes for 2012 2008–16, 2008 IRB 547, at http://www. File my taxes for 2012 irs. File my taxes for 2012 gov/irb/2008-10_IRB/ar12. File my taxes for 2012 html . File my taxes for 2012 For more information on like-kind exchanges, see chapter 1 of Publication 544. File my taxes for 2012 Comments and suggestions. File my taxes for 2012   We welcome your comments about this publication and your suggestions for future editions. File my taxes for 2012   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. File my taxes for 2012 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. File my taxes for 2012 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. File my taxes for 2012   You can send your comments from www. File my taxes for 2012 irs. File my taxes for 2012 gov/formspubs/. File my taxes for 2012 Click on “More Information” and then on “Comment on Tax Forms and Publications”. File my taxes for 2012   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. File my taxes for 2012 Ordering forms and publications. File my taxes for 2012   Visit www. File my taxes for 2012 irs. File my taxes for 2012 gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. File my taxes for 2012 Internal Revenue Service 1201 N. File my taxes for 2012 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. File my taxes for 2012   If you have a tax question, check the information available on IRS. File my taxes for 2012 gov or call 1-800-829-1040. File my taxes for 2012 We cannot answer tax questions sent to either of the above addresses. File my taxes for 2012 Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 523 Selling Your Home 534 Depreciating Property Placed in Service Before 1987 535 Business Expenses 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts 551 Basis of Assets 925 Passive Activity and At-Risk Rules 946 How To Depreciate Property Form (and Instructions) 4562 Depreciation and Amortization 5213 Election To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit 8582 Passive Activity Loss Limitations Schedule E (Form 1040) Supplemental Income and Loss   See chapter 6, How To Get Tax Help for information about getting these publications and forms. File my taxes for 2012 Prev  Up  Next   Home   More Online Publications