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Publication 547 - Introductory Material

Table of Contents

What's New for 2009

Increase in personal casualty and theft loss limit. Generally, each personal casualty or theft loss is limited to the excess of the loss over $500. In addition, the 10%-of-adjusted gross income (AGI) limit continues to apply to the net loss.

New Schedule L (Form 1040A or 1040). If you claim a net disaster loss as part of your standard deduction, you must complete Schedule L (Form 1040A or 1040) and attach it to Form 1040. See Disaster Area Losses later.

What's New for 2010

Decrease in personal casualty and theft loss limit. Each personal casualty or theft loss is limited to the excess of the loss over $100 (instead of $500). In addition, the 10%-of-AGI limit continues to apply to the net loss.

Disaster losses. The special rules that were in effect in 2008 and 2009 for losses of personal use property attributable to federally declared disasters do not apply to losses occurring in 2010 and later years. Instead, these losses will be subject to the 10%-of-AGI limit and will be deductible only if you itemize your deductions. These losses will continue to be subject to the $100-per-loss limit.

Reminder

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 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.

Introduction

This publication explains the tax treatment of casualties, thefts, and losses on deposits. A casualty occurs when your property is damaged as a result of a disaster such as a storm, fire, car accident, or similar event. A theft occurs when someone steals your property. A loss on deposits occurs when your financial institution becomes insolvent or bankrupt.

This publication discusses the following topics.

  • Definitions of a casualty, theft, and loss on deposits.

  • How to figure the amount of your gain or loss.

  • How to treat insurance and other reimbursements you receive.

  • The deduction limits.

  • When and how to report a casualty or theft.

  • The special rules for disaster area losses.

Forms to file.   Generally, when you have a casualty or theft, you have to file Form 4684. You may also have to file one or more of the following forms.

  • Schedule A (Form 1040).

  • Form 1040NR, Schedule A (for nonresident aliens).

  • Schedule D (Form 1040).

  • Schedule L (Form 1040A or 1040).

  • Form 4797.

For details on which form to use, see How To Report Gains and Losses, later.

Condemnations.   For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544.

Workbooks for casualties and thefts.   Publication 584 is available to help you make a list of your stolen or damaged personal-use property and figure your loss. It includes schedules to help you figure the loss on your home and its contents, and your motor vehicles.

  Publication 584-B is available to help you make a list of your stolen or damaged business or income-producing property and figure your loss.

Comments and suggestions.   We welcome your comments about this publication and your suggestions for future editions.

  You can write to us at the following address:


Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224

  We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

  You can email us at *taxforms@irs.gov. (The asterisk must be included in the address.) Please put “Publications Comment” on the subject line. Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products.

Ordering forms and publications.   Visit www.irs.gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received.


Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613

Tax questions.   If you have a tax question, check the information available on www.irs.gov or call 1-800-829-1040. We cannot answer tax questions sent to either of the above addresses.

Useful Items - You may want to see:

Publication

  • 523 Selling Your Home

  • 525 Taxable and Nontaxable Income

  • 550 Investment Income and Expenses

  • 551 Basis of Assets

  • 584 Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property)

  • 584-B Business Casualty, Disaster, and
    Theft Loss Workbook

Form (and Instructions)

  • Schedule A (Form 1040) Itemized Deductions

  • Form 1040NR, Schedule A Itemized Deductions (for nonresident aliens)

  • Schedule D (Form 1040) Capital Gains and Losses

  • Schedule L (Form 1040A or 1040) Standard Deduction for Certain Filers

  • 4684 Casualties and Thefts

  • 4797 Sales of Business Property

See How To Get Tax Help near the end of this publication for information about getting publications and forms.

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