Casualty and Theft Losses

How to report casualty and theft losses?

Casualty and theft losses are reported on Schedule A line 19. Casualty and theft losses reported on Schedule A on line 19 relate only to damages to personal use property. The tax form 4684, Casualties and Thefts is used to figure out the tax deduction for casualty and theft losses.

Calculating the amount of casualty and theft losses

To find the amount of a casualty or theft loss deduction, you must go through several steps. First you have to determine whether a loss you suffer is a casualty or theft as the tax law defines those terms. If you have insurance that covers the loss or damage, the amount of the loss must be reduced by any reimbursement you receive and you might have to report a gain. Finally, there are limits on casualty and theft losses that reduce or eliminate the amount allowed on Schedule A.

Amount of Loss

Figuring Decrease in FMV

Reimbursements

More Than One Item Damaged or Lost

Tax Deduction Limits

Figuring Out Tax Deductions