Describe the type of property (for example, furniture, jewelry, car, etc.). If you are reporting a loss attributable to a federally declared disaster, and you checked the box and entered the FEMA disaster declaration number in the space provided above line 1, enter the ZIP code for the property most affected on the line for Property A.

Cost or other basis usually means original cost plus improvements. Subtract any postponed gain from the sale of a previous main home. Special rules apply to property received as a gift or inheritance. See Basis Other Than Cost in Pub. 551 for details. 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, Allocation of Increase in Basis for Property Received From a Decedent, refer to the information provided by the executor or see Pub. 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, available at IRS.gov/Pub/IRS-Prior/p4895--2011.pdf.

Enter on this line the amount of insurance or other reimbursement you received or expect to receive for each property. Include your insurance coverage whether or not you are filing a claim for reimbursement. For example, your car worth $2,000 is totally destroyed in a flood in an area designated as a federal disaster. You are insured with a $500 deductible, but decide not to report it to your insurance company because you are afraid the insurance company will cancel your policy. In this case, enter $1,500 on this line.

If you expect to be reimbursed but haven't yet received payment, you must still enter the expected reimbursement from the loss. If, in a later tax year, you determine with reasonable certainty that you won't be reimbursed for all or part of the loss, you can deduct for that year the amount of the loss that isn't reimbursed.

If you are entitled to an insurance payment or other reimbursement for any part of a casualty or theft loss but you choose not to file a claim for the loss, you can't realize a gain from that payment or reimbursement. Therefore, figure the gain on line 4 by subtracting your cost or other basis in the property (line 2) only from the amount of reimbursement you actually received. Enter the result on line 4, but don't enter less than zero.

If you filed a claim for reimbursement but didn't receive it until after the year of the casualty or theft, include the gain in your income in the year you received the reimbursement.

Fair market value (FMV) is the price at which the property would be sold between a willing buyer and a willing seller, each having knowledge of the relevant facts. The difference between the FMV immediately before the casualty or theft and the FMV immediately after represents the decrease in FMV because of the casualty or theft.

The FMV of property after a theft is zero if the property isn't recovered.

FMV is generally determined by a competent appraisal. The appraiser's knowledge of sales of comparable property about the same time as the casualty or theft, knowledge of your property before and after the occurrence, and the methods of determining FMV are important elements in proving your loss.

The appraised value of property immediately after the casualty must be adjusted (increased) for the effects of any general market decline that may occur at the same time as the casualty or theft. For example, the value of all nearby property may become depressed because it is in an area where such occurrences are commonplace. This general decline in market value isn't part of the property's decrease in FMV as a result of the casualty or theft.

Replacement cost or the cost of repairs isn't necessarily FMV. However, you may be able to use the cost of repairs to the damaged property as evidence of loss in value if:

To figure a casualty loss to real estate not used in a trade or business, or for income-producing purposes, measure the decrease in value of the property as a whole. All improvements, such as buildings, trees, and shrubs, are considered together as one item. Figure the loss separately for other items. For example, figure the loss separately for each piece of furniture.

If you sustained a qualified disaster loss, including those sustained in 2023, add the amounts on line 4 of all Forms 4684. Compare the sum with the amount on line 10. If the amount on line 10 is larger, enter $500 on line 11 of the Form 4684 reporting the qualified disaster losses.

If the amount on line 10 is smaller, or if you are reporting a disaster loss, enter $100 and complete the remainder of the form without applying the special rules for qualified disaster losses.

Enter on this line the amounts from line 4 of all Forms 4684 reporting a gain.

If you have personal casualty losses that are not attributable to a federally declared disaster, such as those described above, use Worksheet 1-1 to calculate the amount you should enter on line 14. Otherwise, add the amounts on line 12 of all Forms 4684 and enter that total on line 14.

Estates and trusts figure AGI in the same way as individuals, except that the costs of administration are allowed in figuring AGI.

If you had a casualty or theft loss involving a home you used for business or rented out, your deductible loss may be limited. First, complete Form 4684, Section B, lines 19 through 26. If the loss involved a home used for a business for which you are filing Schedule C (Form 1040), Profit or Loss From Business, figure your deductible casualty or theft loss on Form 8829, Expenses for Business Use of Your Home (if you are using Form 8829). Enter on Form 4684, line 27, the deductible loss from Form 8829, line 35, and “See Form 8829” above line 27. For a home you rented out or used for a business for which you aren't filing Schedule C (Form 1040), see section 280A(c)(5) to figure your deductible loss. Attach a statement showing your computation of the deductible loss, enter that amount on line 27, and enter “See attached statement” above line 27.

A gain or loss from a casualty or theft of property used in a passive activity isn't taken into account in determining the loss from a passive activity unless losses similar in cause and severity recur regularly in the activity. See Form 8582, Passive Activity Loss Limitations, and its instructions for details.

The IRS has issued the following guidance to assist taxpayers who are victims of losses from Ponzi-type investment schemes.

If you qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, and choose to follow the procedures in the guidance, first fill out Section C to determine the amount to enter on Section B, line 28. Skip lines 19 through 27. Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. You don't need to complete Appendix A.

For more information, see the instructions for Section C, later, and the above revenue ruling and revenue procedures.

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 through 39, as appropriate.

Partnerships and S corporations that have a casualty or theft involving property for which the section 179 expense deduction was previously claimed and passed through to the partners or shareholders must not use Form 4684 to report the transaction. Instead, see the Instructions for Form 4797 for details on how to report it. Partners and S corporation shareholders who receive a Schedule K-1 reporting such a transaction should see the Instructions for Form 4797 for details on how to figure the amount to enter on Form 4684, line 20.

If you are claiming a loss from a fraudulent investment arrangement and you are not filling out Section C, you must enter the name, taxpayer identification number (if known), and address (if known) of the individual or entity that conducted the fraudulent arrangement. Complete the rest of Section B, Part I.

Cost or adjusted basis usually means original cost plus improvements, minus depreciation allowed or allowable (including any section 179 expense deduction), amortization, depletion, etc. Special rules apply to property received as a gift or inheritance. See Basis Other Than Cost in Pub. 551 for details. 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 Pub. 4895, available at IRS.gov/Pub/IRS-Prior/p4895--2011.pdf.

If you dispose of a portion of a Modified Accelerated Cost Recovery System (MACRS) asset as a result of a casualty event, enter the adjusted basis of the disposed portion of the asset. MACRS assets include buildings (and their structural components) and other tangible depreciable property placed in service after 1986 that is used in a trade or business or for the production of income. The adjusted basis of the disposed portion of the asset is the adjusted depreciable basis of that disposed portion at the time of its disposition, as determined under the applicable convention. You must reduce the basis and the depreciation reserve of the MACRS asset by the basis and depreciation reserve attributable to the disposed portion as of the first day of the tax year, before you compute the depreciation deduction for the current year. To figure the depreciation deductions for the remaining MACRS asset and the disposed portion, see the instructions for Form 4562, line 19, column (g). For more information, see Regulations section 1.168(i)-8. For partial dispositions from casualties to MACRS assets accounted for in a General Asset Account, see Regulations section 1.168(i)-1.

See the instructions for line 3, earlier.

See the instructions forline 4, earlier.

See the instructions for lines 5 and 6 for details on determining FMV.

If the amount on line 28 includes losses on property held 1 year or less, and losses on property held for more than 1 year, you must allocate the amount between lines 29 and 34 according to how long you held each property. Enter on line 29 all gains and losses on property held 1 year or less. Enter on line 34 all gains and losses on property held more than 1 year, except as provided in the instructions for line 33.

If you are claiming a theft loss from a Ponzi-type investment scheme and are following the procedures in Revenue Procedure 2009-20, 2009-14 I.R.B. 749, enter on line 28 the amount from Section C, line 51. Don't complete Section B, lines 19 through 27, of Form 4684 for that loss. You must fill out Section B, Part II.

On lines 29 and 34, use a separate line to identify each casualty or theft. If you have more than two casualties or thefts, attach an additional sheet following the format of lines 29 and 34.

If you are claiming a theft loss from a Ponzi-type investment scheme, enter the name of the individual or entity that conducted the fraudulent arrangement.

Enter the part of line 28 from trade, business, rental, or royalty property.

Enter the part of line 28 from income-producing property. Income-producing property is property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art.

On line 29, enter the part of line 22 that is from property held for 1 year or less.

On line 34, enter the part of line 22 that is from property held for more than 1 year.

Include in the total any amounts from the additional sheet you attached because you had more than two casualties or thefts on line 29.

If Form 4797, Sales of Business Property, isn't otherwise required, enter the amount from this line on your Schedule 1 (Form 1040), line 4. Next to that line, enter “Form 4684.”

Estates and trusts, enter the amount from line 32 on the “Other deductions” line of your tax return. Partnerships, enter on Form 1065, Schedule K, line 13d. S corporations, enter on Form 1120-S, Schedule K, line 12d. Next to that line, enter “Form 4684.”

If you had a casualty or theft gain from certain trade, business, or income-producing property held more than 1 year, you may have to recapture part or all of the gain as ordinary income. See the instructions for Form 4797, Part III, for more information on the types of property subject to recapture. If recapture applies, complete Form 4797, Part III, and this line, instead of Form 4684, line 34.

Include in the total any amounts from the additional sheet you attached because you had more than two casualties or thefts.

Taxpayers, other than partnerships and S corporations, if Form 4797 isn't otherwise required, enter the amount from this line on the appropriate line for the form you are filing.

Enter the initial amount of cash or basis of property that you invested in the investment arrangement. Don't include any of the following on this line, line 41, or line 42.

For definitions of responsible group, specified fraudulent arrangement, and qualified investor, see Section 4 of Revenue Procedure 2009-20.

Enter the amounts of cash or the basis of property that you invested after you made the initial investment (including amounts reinvested).

Enter the total amounts of net income (for example, interest and dividends minus expenses) from the specified fraudulent arrangement that, consistent with information received from that arrangement, you included in income for federal tax purposes for all tax years before the discovery year, including tax years for which a refund is barred by the statute of limitations.

Enter the total amount of cash or property that you withdrew from the investment arrangement in all years (whether designated as income or principal).

This is the amount of your investment that is eligible for a deduction before any actual or potential recoveries are taken into account.

Enter the amounts you actually received as a reimbursement or recovery from any source. Don't include amounts that are potential direct recoveries (defined earlier) or potential third-party recoveries (defined earlier).

Enter the amount of potential insurance/SIPC recovery (defined earlier).

Enter the amount from line 51 on line 28 of Section B. Don't complete lines 19 through 27 for this loss. Then completeSection B, Part II.

Read the statements and declarations in this part carefully. Enter the required information in the spaces provided. You are agreeing to these statements and declarations when you sign your tax return. The information you enter in this part will be used to verify the fraudulent investment arrangement.

Fill out Part I if you want to make an election to deduct a loss attributable to a federally declared disaster and that occurred in a federally declared disaster area in the tax year immediately preceding the tax year the loss was sustained. By making this election, you agree not to deduct the loss for the disaster year.

Attach Section D to your original return or amended return for the tax year immediately preceding the tax year the loss was sustained to claim the disaster loss deduction.

You must make this election on or before the date that is 6 months after the regular due date for filing your original return (without extensions) for the disaster year.

Fill out Part II if you want to revoke a prior election to deduct a loss attributable to a federally declared disaster and that occurred in a federally declared disaster area in the tax year immediately preceding the tax year the loss was sustained.

Attach Section D to your amended return for the tax year immediately preceding the tax year the loss was sustained to revoke the previous disaster loss deduction. You must file this amended return for the preceding year on or before the date you file the original return or amended return for the disaster year on which you claim the disaster loss.

You can revoke the prior election on or before the date that is 90 days after the due date for making the election.