Form 4684: Casualties And Thefts

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.



comments powered by Disqus
Hot Definitions
  1. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  2. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  3. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  4. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  5. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  6. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
Trading Center