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. Insurance Claim

    A formal request to an insurance company asking for a payment ...
  5. Internal Revenue Service - IRS

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

    A broad category of coverage against loss of property, damage ...
Related Articles
  1. Home & Auto

    Protecting Your Financial Documents From Disaster

    Organizing and updating your records regularly can save you a lot of grief in a time of crisis.
  2. Taxes

    Deducting Disaster: Casualty And Theft Losses

    If you've been a victim, your losses may be deductible. Find out how.
  3. Home & Auto

    Prepare Your Finances To Handle Natural Disasters

    Use these easy tips to protect your financial interests from natural disasters.
  4. Taxes

    Cut Taxes By Reporting Property Damage

    Know the options you have for your insured property if and when a disaster strikes.
  5. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  6. Retirement

    Tax Relief For Katrina Victims

    Find out if you qualify for the assistance offered to hurricane survivors by the U.S. government.
  7. Options & Futures

    Options and Roth IRAs: Do's and Don'ts

    A breakdown of the do's and don'ts of trading options in a Roth IRA.
  8. Options & Futures

    5 Secrets You Didn't Know About Roth IRAs

    Between its generous tax benefits at retirement and no required minimum distributions, a Roth IRA is well worth considering if you're eligible to have one.
  9. Taxes

    What To Do If You Lost Your W-2

    There's no need to panic if you don't have your Form W-2 to file taxes, there are easy ways to gain access to the missing form or file without it.
  10. Taxes

    How To Use Your IRA As A Last-Minute Tax Deduction

    While some people are stressing over their taxes, there is a big advantage to delaying the process: You can maximize your 2014 contributions to your IRA.

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center