IRS Publication 547
Definition of 'IRS Publication 547'
A document published by the Internal Revenue Service (IRS) that provides information on how taxpayers are to treat casualty, theft and other property gains and losses when filing taxes. IRS Publication 547 indicates how insurance payments for losses are to be reported, what constitutes property theft or casualty loss and the amount of loss that can be deducted.
Investopedia explains 'IRS Publication 547'
Gains and losses caused by some natural disasters, such as floods and hurricanes, may fall under special, temporary rules that allow the taxpayer extra allowances.
Taxpayers typically fill out Form 4684 (Casualties and Thefts) when reporting a casualty or theft, but may also need to complete Schedule A, Schedule D or Form 3797 (Sales of Business Property).