Form 4684: Casualties And Thefts

AAA

DEFINITION of 'Form 4684: Casualties And Thefts'

A tax form distributed by the Internal Revenue Service (IRS) used to report casualties and thefts of personal property. Taxpayers can deduct losses stemming from fires, floods and other casualties, as well as robberies, larcenies and other forms of theft. Losses are to be deducted in the tax year that they occurred or, in the case of a theft, when they were discovered.


Personal injury related to the loss, such as bodily injury from a storm that also damaged a home, cannot be deducted. Taxpayers who submit an insurance claim for a loss and receive reimbursement greater than the cost basis of the property may be required to pay additional taxes.


Form 4684 is not to be used for casualties and theft affecting income-producing or business property.

INVESTOPEDIA EXPLAINS 'Form 4684: Casualties And Thefts'

If the property is covered by insurance, only the part of the loss not covered can be deducted. If the property is covered and the taxpayer does not submit a timely insurance claim, then the loss cannot be deducted.


Damage resulting from major disasters, such as hurricanes, sometimes falls under unique provisions that only last for a few years. For example, special provisions were made available to victims of Hurricane Katrina in 2005.

RELATED TERMS
  1. IRS Publication 547

    A document published by the Internal Revenue Service (IRS) that ...
  2. Loss Settlement Amount

    A term used to denote the amount of a homeowner's insurance settlement. ...
  3. Casualty And Theft Losses

    Deductible losses stemming from the loss or destruction of the ...
  4. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  5. Casualty Insurance

    A broad category of coverage against loss of property, damage ...
  6. Insurance Claim

    A formal request to an insurance company asking for a payment ...
Related Articles
  1. Protecting Your Financial Documents ...
    Home & Auto

    Protecting Your Financial Documents ...

  2. Deducting Disaster: Casualty And Theft ...
    Taxes

    Deducting Disaster: Casualty And Theft ...

  3. Preparing Your Finances From Natural ...
    Home & Auto

    Preparing Your Finances From Natural ...

  4. Cut Taxes By Reporting Property Damage
    Taxes

    Cut Taxes By Reporting Property Damage

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center