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Department of the Treasury
Internal Revenue Service
2023

Instructions for Form 4684

Casualties and Thefts

Section references are to the Internal Revenue Code unless otherwise Personal casualty and theft losses attributable to a qualified disaster
noted. loss are not subject to the 10% of the AGI reduction and the $100
reduction is increased to $500.
An exception to the rule above limiting the personal casualty and theft
General Instructions loss deduction to losses attributable to a federally declared disaster
applies if you have personal casualty gains for the tax year. In this case,
Future Developments you will reduce your personal casualty gains by any casualty losses not
For the latest information about developments related to Form 4684 and attributable to a federally declared disaster. Any excess gain is used to
its instructions, such as legislation enacted after they were published, go reduce losses from a federally declared disaster.
to IRS.gov/Form4684. For more information, see Disaster Losses, later, the instructions for
line 14, and Pub. 547.
What’s New
Federal Emergency Management Agency (FEMA) disaster declara-
Disaster-related benefits extension. At the time these instructions tion numbers. If you are reporting a casualty or theft loss attributable to
were going to print, new legislation was being considered that would a federally declared disaster, check the box and enter the DR or EM
extend the rules for the treatment of certain disaster-related personal declaration number assigned by FEMA in the space provided above
casualty losses. line 1 on your 2023 Form 4684. For additional information, see FEMA
To see if this legislation was enacted and how these rules would be disaster declaration numbers, later.
extended, go to IRS.gov/Form4684. AMT adjustment for standard deduction made retroactively inap-
plicable to net qualified disaster losses. The AMT adjustment for the
Reminders standard deduction doesn't apply to the increase in the standard
deduction that is attributable to a net disaster loss. See Taxpayers who
Mandatory 60-day postponement. Certain taxpayers affected by a also file the 2023 Form 6251, Alternative Minimum Tax for Individuals,
federally declared disaster that occurs after December 20, 2019, may be later, for more information.
eligible for a mandatory 60-day postponement for certain tax deadlines
such as filing or paying income, excise, and employment taxes; and Special rules for capital gains invested in qualified opportunity
making contributions to a traditional IRA or Roth IRA. For more funds (QOFs). If you have a capital gain for 2023, you can invest that
information, see Pub. 547. gain into a QOF and elect to defer part or all of the gain that you would
otherwise include in income until December 31, 2026. You may also be
How to report the loss on Form 1040-X. You should adjust your able to permanently exclude gain from the sale or exchange of an
deductions on Form 1040-X. The Instructions for Form 1040-X show how investment in a QOF if the investment is held for at least 10 years. For
to do this. Explain the reasons for your adjustment and attach Form 4684 information about how to elect to use these special rules, see the
to show how you figured your loss. See Figuring a Loss in Pub. 547. Instructions for Form 8949. For additional information, see Opportunity
If the damaged or destroyed property was nonbusiness property and Zones Frequently Asked Questions.
you didn’t itemize your deductions on your original return, you must first Deferral of gain invested in a QOF. If you realize a gain from an
determine whether the casualty loss deduction now makes it actual, or deemed, sale or exchange with an unrelated person and
advantageous for you to itemize. It is advantageous to itemize if the total during the 180-day period beginning on the date realizing the gain,
of the casualty loss deduction and any other itemized deductions is more invested an amount of the gain in a QOF, you may be able to elect to
than your standard deduction (and increased standard deduction temporarily defer part or all of the gain that would otherwise be included
amount, if applicable). If you itemize, attach Schedule A (Form 1040) or in income. If you make the election, the gain is included in taxable
Schedule A (Form 1040-NR), and Form 4684 to your amended return. income only to the extent, if any, that the amount of realized gain
Fill out Form 1040-X to refigure your tax to find your refund. exceeds the aggregate amount invested in a QOF during the 180-day
Special rules and return procedures expanded for claiming quali- period beginning on the date the gain was realized.
fied disaster-related personal casualty losses. The Taxpayer How to report. Report the gain as it would otherwise be reported if
Certainty and Disaster Tax Relief Act of 2019 and the Taxpayer Certainty you were not making the election. Report the election for the amount
and Disaster Tax Relief Act of 2020 expanded the special rules and invested in a QOF on Form 8949. See Form 8949 for how to make the
return procedures for personal casualty losses attributable to certain election. You will need to attach Form 8997 annually until you dispose of
major federal disasters that were declared in 2018, 2019, and 2020. the QOF investment. See the Form 8997 instructions for more
information.
Qualified disaster losses in those tax years may be claimed on Form
4684. See Qualified disaster loss, later, for more information. Purpose of Form
If applicable, you may have to file an amended return on Form Use Form 4684 to report gains and losses from casualties and thefts.
TIP 1040-X to claim these benefits on your 2018, 2019, and/or 2020 Attach Form 4684 to your tax return.
returns. Form 1040-X is available at IRS.gov/Form1040X. Prior
revisions of Form 4684 are available at IRS.gov/Form4684. Definitions
Limitation on personal casualty and theft losses. For tax years Three types of casualty losses are described in these instructions.
2018 through 2025, if you are an individual, casualty or theft losses of 1. Federal Casualty Losses.
personal-use property are deductible only if the loss is attributable to a
federally declared disaster. 2. Disaster Losses.
Personal casualty and theft losses attributable to a federally declared 3. Qualified Disaster Losses.
disaster are subject to the $100 per casualty and 10% of your adjusted All three types of losses refer to federally declared disasters, but the
gross income (AGI) reductions unless they are attributable to a qualified requirements for each loss vary. A federally declared disaster is a
disaster loss. disaster determined by the President of the United States to warrant
assistance by the federal government under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (Stafford Act). A federally

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declared disaster includes (a) a major disaster declaration, or (b) an full unrecovered amount as a casualty or theft loss and only the part of
emergency declaration under the Stafford Act. the loss that isn't covered by your insurance policy is deductible.
Federal casualty loss. A federal casualty loss is an individual’s Related expenses. The related expenses you have due to a casualty or
casualty or theft loss of personal-use property that is attributable to a theft, such as expenses for the treatment of personal injuries or for the
federally declared disaster. The casualty loss must occur in a state rental of a car, aren't deductible as casualty or theft losses.
receiving a federal disaster declaration. If you suffered a federal casualty Costs for protection against future casualties aren't deductible but
loss, you are eligible to claim a casualty loss deduction. If you suffered a should be capitalized as permanent improvements. An example would
casualty or theft loss of personal-use property that was not attributable to be the cost of a levee to stop flooding.
a federally declared disaster, it is not a federal casualty loss, and you
may not claim a casualty loss deduction unless the exception applies. Losses You Can't Deduct
See the Caution under Losses You Can Deduct, later.
• Money or property misplaced or lost.
Disaster loss. A disaster loss is a loss that is attributable to a federally • Breakage of china, glassware, furniture, and similar items under
declared disaster and that occurs in an area eligible for assistance normal conditions.
pursuant to the Presidential declaration. The disaster loss must occur in • Progressive damage to property (buildings, clothes, trees, etc.)
a county eligible for public or individual assistance (or both). Disaster caused by termites, moths, other insects, or disease.
losses are not limited to individual personal-use property and may be • A decline in market value of stock, caused by disclosure of
claimed for individual business or income-producing property and by accounting or other illegal misconduct by the officers or directors of
corporations, S corporations, and partnerships. If you suffered a disaster the corporation that issues the stock, that was acquired on the open
loss, you are eligible to claim a casualty loss deduction and to elect to market for investment. You may be able to deduct it as a capital loss
claim the loss in the preceding tax year. See Disaster Losses, later. on Schedule D (Form 1040) if the stock is sold or exchanged or
Qualified disaster loss. A qualified disaster loss also includes an becomes completely worthless. See chapter 4 of Pub. 550,
individual's casualty or theft loss of personal-use property that is Investment Income and Expenses.
attributable to:
• A major disaster declared by the President under section 401 of the Note. Victims of fraudulent investment schemes can claim a theft loss
Stafford Act in 2016; deduction if certain conditions apply. See Losses From Ponzi-Type
• Hurricane Harvey; Investment Schemes, later, for more information.
• Tropical Storm Harvey;
• Hurricane Irma; Gain on Reimbursement
• Hurricane Maria; If the amount you receive in insurance or other reimbursement is more
• The California wildfires in 2017 and January 2018; than the cost or other basis of the property, you have a gain. If you have a
• A major disaster that was declared by the President under section gain, you may have to pay tax on it, or you may be able to postpone the
401 of the Stafford Act and that occurred in 2018 and before gain.
December 21, 2019, and continued no later than January 19, 2020
(except those attributable to the California wildfires in January 2018 Don't report the gain on damaged, destroyed, or stolen property if you
that received prior relief); and receive property that is similar or related to it in service or use. Your basis
• A major disaster that was declared by the President during the in the new property is the same as your basis in the old property.
period between January 1, 2020, and February 25, 2021. Also, this
disaster must have an incident period that began on or after Any tangible replacement property held for use in a trade or business
December 28, 2019, and on or before December 27, 2020. is treated as similar or related in service or use to property held for use in
However, this change does not include those losses attributable to a trade or business or for investment if:
any major disaster which has been declared only by reason of • The property you are replacing was damaged or destroyed in a
COVID-19 and must have ended no later than January 26, 2021. disaster, and
The definition of a qualified disaster loss does not extend to any • The area in which the property was damaged or destroyed was
major disaster that has been declared only by reason of COVID-19 declared by the President of the United States to warrant federal
(because the incident period for COVID-19 extended beyond assistance because of that disaster.
January 26, 2021). Thus, given that the incident period for
COVID-19 generally ran from January 20, 2020 to May 11, 2023, a Generally, you must recognize the gain if you receive unlike property
loss due to COVID-19 is not a qualified disaster loss. or money as reimbursement. But you can generally choose to postpone
all or part of the gain if, within 2 years of the end of the first tax year in
If you suffered a qualified disaster loss, you are eligible to claim a which any part of the gain is realized, you purchase:
casualty loss deduction, to elect to claim the loss in the preceding tax • Property similar or related in service or use to the damaged,
year, and to deduct the loss without itemizing other deductions on destroyed, or stolen property; or
Schedule A (Form 1040). See Qualified disaster losses and Increased • A controlling interest (at least 80%) in a corporation owning such
standard deduction reporting, later. property.
See also IRS.gov/DisasterTaxRelief for date-specific declarations
associated with these disasters and for more information. To postpone all of the gain, the cost of the replacement property must
be equal to or more than the reimbursement you received for your
Losses You Can Deduct property. If the cost of the replacement property is less than the
reimbursement received, you must recognize the gain to the extent the
For tax years 2018 through 2025, if you are an individual, losses of reimbursement exceeds the cost of the replacement property.
personal-use property from fire, storm, shipwreck, or other casualty, or
theft are deductible only if the loss is attributable to a federally declared If the replacement property or stock is acquired from a related
disaster (federal casualty loss). See Pub. 547 for more information. person, gain generally can't be postponed by:
If the event causing you to suffer a personal casualty loss occurred • Corporations (other than S corporations);
before January 1, 2018, but the casualty loss was not sustained until • Partnerships in which more than 50% of the capital or profits interest
January 1, 2018, or later, the casualty loss is not deductible. See When is owned by corporations (other than S corporations); or
To Deduct a Loss, later, for more information on when a casualty loss is • All other taxpayers, unless the aggregate realized gains on the
sustained. involuntarily converted property are $100,000 or less for the tax
year. This rule applies to partnerships and S corporations at both
An exception to the rule limiting the deduction for personal the entity and partner or shareholder level.
! casualty and theft losses to federal casualty losses applies
CAUTION where you have personal casualty gains to the extent the losses For details on how to postpone the gain, see Pub. 547.
don’t exceed your gains.
If your main home was located in a disaster area and that home or
If your property is covered by insurance, and your loss is otherwise any of its contents were damaged or destroyed due to the disaster,
deductible, you should file a timely insurance claim for reimbursement of special rules apply. See Gains Realized on Homes in Disaster Areas,
your loss. If you don't file a timely insurance claim, you can't deduct the later.

2 Instructions for Form 4684 (2023)

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                                                                              Revoking a prior election to deduct loss in the preceding year. 
When To Deduct a Loss                                                         Complete Part II of Section D if you want to revoke a 2022 disaster year 
Generally, you can deduct the part of your casualty or theft loss that isn't  election to deduct a federally declared disaster loss in the preceding tax 
reimbursable in the tax year the casualty occurred or the theft was           year. Attach the completed Section D to an amended return for the 
discovered. However, a disaster loss and a loss from deposits in              preceding year (that is, to an amended 2022 return for the revocation of a 
insolvent or bankrupt financial institutions may be treated differently. See  2023 disaster year election). See Section D—Election To Deduct 
Disaster Losses and Special Treatment for Losses on Deposits in               Federally Declared Disaster Loss in Preceding Tax Year, later.
Insolvent or Bankrupt Financial Institutions, later.                          Your amended return revoking the election must be filed on or before 
If in the year of the casualty there is a claim for reimbursement with a      the date that is 90 days after the due date for making the election and on 
reasonable prospect of recovery, the loss is not sustained until you know     or before the date you file any return or amended return for the year that 
with reasonable certainty whether such reimbursement will be received.        includes the disaster loss.
If you aren't sure whether part of your casualty or theft loss will be        Your amended return should refigure your tax liability as a result of 
reimbursed, don't deduct that part until the tax year when you become         revoking the election. You must pay or make arrangements to pay any tax 
reasonably certain that it won't be reimbursed. This later tax year is when   and interest due as a result of the revocation.
your loss is sustained.
                                                                              Home made unsafe by disaster.       If your home was located in a 
If you are reimbursed for a loss you deducted in an earlier year,             disaster area and your state or local government ordered you to tear it 
include the reimbursement in your income in the year you received it, but     down or move it because it was no longer safe to use as a home due to 
only to the extent the deduction reduced your tax in an earlier year.         the disaster, the resulting loss in value is treated as a disaster loss. The 
See Lessee's loss in Pub. 547 for special rules on when to deduct             order for you to tear down or move the home must have been issued 
losses from casualties and thefts to leased property.                         within 120 days after the area was officially declared a disaster area.
                                                                              For purposes of figuring the disaster loss, use the value of your home 
Disaster Losses                                                               before you moved it or tore it down as its fair market value after the 
A disaster loss is a loss that occurred in an area determined by the          casualty.
President of the United States to warrant federal disaster assistance and     Qualified disaster losses. A qualified disaster loss also includes an 
that is attributable to a federally declared disaster. It includes a major    individual's casualty or theft loss of personal-use property that is 
disaster or emergency declaration.                                            attributable to:
        For a list of federally declared disasters and disaster areas, see    •   A major disaster declared by the President under section 401 of the 
TIP     FEMA.gov/Disasters.                                                       Stafford Act in 2016;
                                                                              •   Hurricane Harvey;
                                                                              •   Tropical Storm Harvey;
To determine the amount to deduct for a disaster loss, you must take          •   Hurricane Irma;
into account as reimbursements any benefits you received or which you         •   Hurricane Maria;
have a reasonable possibility of receiving from federal or state programs     •   The California wildfires in 2017 and January 2018; and
to restore your property.                                                     •   A major disaster that was declared by the President under section 
Disaster year. The disaster year is the tax year in which you sustained           401 of the Stafford Act and that occurred in 2018 and before 
the loss attributable to a federally declared disaster. Generally, a disaster     December 21, 2019, and continued no later than January 19, 2020 
loss is sustained in the year the disaster occurred. However, a disaster          (except those attributable to the California wildfires in January 2018 
loss may also be sustained in a year after the disaster occurred. For             that received prior relief).
example, if a claim for reimbursement exists for which there is a             •   A qualified disaster loss also includes an individual's casualty or 
reasonable prospect of recovery, no part of the loss for which                    theft of personal-use property that is attributable to a major disaster 
reimbursement may be received is sustained until it can be ascertained            that was declared by the President during the period between 
with reasonable certainty whether you will be reimbursed.                         January 1, 2020, and February 25, 2021. Also, this disaster must 
Example. In December 2022, your car was destroyed in severe                       have an incident period that began on or after December 28, 2019, 
flooding that occurred in the area where you live. The area where you             and on or before December 27, 2020. However, this change does 
lived was designated by FEMA to be eligible for public or individual              not include those losses attributable to a major disaster that has 
assistance (or both). You immediately filed a claim for reimbursement             been declared only by reason of COVID-19 and must have ended 
with your insurance company. There was a reasonable prospect that you             no later than January 26, 2021. The definition of a qualified disaster 
would recover the full amount of your loss. The claim was settled in              loss does not extend to any major disaster that has been declared 
January 2023 when your insurance company reimbursed you for only                  only by reason of COVID-19 (because the incident period for 
half of your loss. The disaster year is 2023 (not 2022 when the loss              COVID-19 extended beyond January 26, 2021). Thus, given that the 
occurred). Your loss was sustained in 2023 because that’s when it                 incident period for COVID-19 generally ran from January 20, 2020 
became reasonably certain whether you would be reimbursed. You can                to May 11, 2023, a loss due to COVID-19 is not a qualified disaster 
either deduct the unreimbursed loss on your tax return for the disaster           loss.
year (2023) or make an election to deduct the unreimbursed loss on your       For specific instructions for reporting these qualified disaster losses, 
tax return for the preceding year (2022).                                     see Line 11 and Line 15, later. See IRS.gov/DisasterTaxRelief for 
                                                                              date-specific declarations associated with these disasters and for more 
        If you realize a gain from the reimbursement on your casualty         information.
!       loss, do not report the gain until the year in which that amount is 
CAUTION received.
                                                                              Note. You can deduct qualified disaster losses without itemizing other 
                                                                              deductions on Schedule A. Moreover, your net casualty loss from these 
Election to deduct loss in the preceding year.       If you have a casualty   qualified disasters doesn’t need to exceed 10% of your adjusted gross 
loss from a federally declared disaster that occurred in an area              income (AGI) to qualify for the deduction, but the $100 limit per casualty 
warranting public or individual assistance (or both), you can elect to        is increased to $500. See Increased standard deduction reporting next 
deduct the loss in the tax year immediately before the disaster year. A list  for more information.
of areas warranting public or individual assistance (or both) is available 
at the FEMA website at FEMA.gov/Disasters.                                    Increased standard deduction reporting.        If you have a net qualified 
To make this election for a loss in disaster year 2023, complete Part I       disaster loss and aren’t itemizing your deductions, you can claim an 
of Section D on your 2021 Form 4684 and attach it to your 2022 original       increased standard deduction using Schedule A (Form 1040) or 
or amended return that claims the disaster loss. See Section D—Election       Schedule A (Form 1040-NR), by doing the following.
To Deduct Federally Declared Disaster Loss in Preceding Tax Year, later.      1. Enter the amount from Form 4684, line 15, on the dotted line next to 
You must make an election to deduct a 2023 disaster loss on your                  line 16 on Schedule A (Form 1040), or line 7 of Schedule A (Form 
2022 return on or before the date that is 6 months after the regular due          1040-NR), and the description “Net Qualified Disaster Loss.”
date for filing your original return (without extensions) for the disaster    2. Also, enter on the dotted line next to line 16 of Schedule A (Form 
year. For calendar year individual taxpayers, the deadline for electing to        1040) or line 7 of Schedule A (Form 1040-NR), your standard 
take a 2023 disaster loss on your 2022 tax return is October 15, 2024.
Instructions for Form 4684 (2023)                                                                                                                          3

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deduction amount and the description “Standard Deduction postponing gain, including rules for when the main home is located in a
Claimed With Qualified Disaster Loss.” disaster area.
3. Combine these two amounts and enter the total in the entry space To postpone the gain, you must purchase the replacement property
on line 16 of Schedule A (Form 1040), or line 7 of Schedule A before 2028. Your basis in the replacement property equals its cost
(Form 1040-NR), and on Form 1040, 1040-SR, or 1040-NR, line 12. decreased by the amount of any postponed gain.

Nonresident aliens cannot claim the standard deduction. Special Treatment for Losses on
! However, there is an exception. Students or business
CAUTION apprentices, who file Form 1040-NR, may be able to take a Deposits in Insolvent or Bankrupt
standard deduction if they are eligible for benefits under Article 21(2) of
the United States-India Income Tax Treaty. They will enter the standard Financial Institutions
deduction amount found for their filing status on Form 1040 or 1040-SR.
See chapter 5 of Pub. 519 and the Instructions for Form 1040-NR for You can no longer claim a loss on a deposit in an insolvent or
details. ! bankrupt financial institution as a personal casualty or theft loss
CAUTION unless the exception mentioned under the Caution under Losses
The alternative minimum tax adjustment for the standard You Can Deduct, earlier, applies. See Pub. 547 for more information.
! deduction is made retroactively inapplicable to net qualified
CAUTION disaster losses. See Taxpayers who also file the 2023 Form Damage From Corrosive Drywall
6251, Alternative Minimum Tax for Individuals, later, for more information. If you suffered property losses due to the effects of certain imported
More information. See Pub. 547 for more information about disaster drywall installed in homes between 2001 and 2009, under a special
losses. procedure, you may be able to claim a casualty loss deduction for
amounts you paid to repair damage to your home and household
appliances that resulted from corrosive drywall. For details, see Special
Gains Realized on Homes in Disaster Procedure for Damage From Corrosive Drywall under Casualty in Pub.
Areas 547.
The following rules apply if your main home was located in an area Because the personal casualty losses claimed under this special
declared by the President of the United States to warrant federal ! procedure are not attributable to a federally declared disaster,
assistance as the result of a disaster, and the home or any of its contents CAUTION they're only deductible to the extent such losses don't exceed
were damaged or destroyed due to the disaster. These rules also apply your personal casualty gains.
to renters who receive insurance proceeds for damaged or destroyed
property in a rented home that is their main home.
1. No gain is recognized on any insurance proceeds received for Specific Instructions
unscheduled personal property that was part of the contents of the
home. Which Sections To Complete
2. Any other insurance proceeds you receive for the home or its Use Section A to figure casualty or theft gains and losses for property
contents are treated as received for a single item of property, and that isn't used in a trade or business or for income-producing purposes.
any replacement property you purchase that is similar or related in Also use Section A to figure casualty or theft losses and gains related to
service or use to the home or its contents is treated as similar or the portion of your home used for business if you used the simplified
related in service or use to that single item of property. Therefore, method to determine your deductible expenses for business use of your
you can choose to recognize gain only to the extent the insurance home.
proceeds treated as received for that single item of property exceed
the cost of the replacement property. Use Section B to figure casualty or theft gains and losses for property
that is used in a trade or business or for income-producing purposes.
3. If you choose to postpone any gain from the receipt of insurance or
other reimbursement for your main home or any of its contents, the If property is used partly in a trade or business and partly for personal
period in which you must purchase replacement property is purposes, such as a personal home with a rental unit, figure the personal
extended until 4 years after the end of the first tax year in which any part in Section A and the business part in Section B.
part of the gain is realized. Use Section C to figure a theft loss deduction from a Ponzi-type
For details on how to postpone gain, see Pub. 547. investment scheme if you qualify to use Revenue Procedure 2009-20, as
modified by Revenue Procedure 2011-58, and choose to follow the
Example. Your main home and its contents were completely procedures in the guidance. Section C of Form 4684 replaces Appendix
destroyed in 2023 by a tornado in a federally declared disaster area. In A in Revenue Procedure 2009-20. You don't need to complete Appendix
2023, you received insurance proceeds of $200,000 for the home, A. See Losses From Ponzi-Type Investment Schemes, later.
$25,000 for unscheduled personal property in your home, $5,000 for
jewelry, and $10,000 for a stamp collection. Use Section D to elect (or revoke an election) to deduct in the
No gain is recognized on the $25,000 of insurance proceeds you immediately preceding tax year a loss that was attributable to a federally
received for the unscheduled personal property. declared disaster and occurred in a federally declared disaster area.

The jewelry and stamp collection were kept in your home and were Section A—Personal-Use Property
scheduled property on your insurance policy. Your home and its
replacement contents are considered a single item of property for the Use a separate column for lines 2 through 9 to show each item lost or
purpose of recognizing gain on the involuntary conversion of your home damaged from a single casualty or theft described on line 1. If more than
and its contents. four items were lost or damaged, use additional sheets following the
format of lines 1 through 9.
If you reinvest $215,000 in a replacement home and its replacement
contents, you can elect to postpone any gain on your home, jewelry, or Use a separate Form 4684 through line 12 for each casualty or theft
stamp collection. involving property not used in a trade or business or for
If you reinvest less than the remaining $215,000 of insurance income-producing purposes. For example, use a separate Form 4684
proceeds in a replacement home and its replacement contents, you may through line 12 for property lost or damaged due to any qualified disaster
have to recognize any gain to the extent the $215,000 of insurance described in Qualified disaster loss, earlier.
proceeds exceeds the amount you invest in a replacement home and its Don't include any loss previously deducted on an estate tax return.
replacement contents.
See Publication 523, Selling Your Home, for more information on gain If you are liable for casualty or theft losses to property you lease from
that may be excluded on a sale, including the receipt of insurance someone else, see Leased property under Figuring a Loss in Pub. 547.
proceeds for a destruction of your home. Also see Publication 547, FEMA disaster declaration numbers. If you are reporting a casualty
Casualties, Disasters, and Thefts, for more information on rules for or theft loss attributable to a federally declared disaster, check the box

4 Instructions for Form 4684 (2023)

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and enter the DR or EM declaration number assigned by FEMA in the Use and occupancy insurance. If insurance reimburses you for your
space provided above line 1 on your 2023 Form 4684. A list of federally loss of business income, it doesn't reduce your casualty or theft loss. The
declared disasters and FEMA disaster declaration numbers is available reimbursement is income and is taxed in the same manner as your
at FEMA.gov/Disasters. business income.
The FEMA disaster declaration number consists of the letters “DR”
and four numbers, or the letters “EM” and four numbers. For example, Main home destroyed. If you have a gain because your main home
enter “DR-4712” in the respective entry spaces for the Tennesee Severe was destroyed, you can generally exclude the gain from your income as if
Thunderstorms and Possible Strong Tornadoes. you had sold or exchanged your home. You may be able to exclude up to
$250,000 of the gain (up to $500,000 if married filing jointly). To exclude
a gain, you must generally have owned and lived in the property as your
Line 1 main home for at least 2 years during the 5-year period ending on the
date it was destroyed. For information on this exclusion, see Pub. 523,
Describe the type of property (for example, furniture, jewelry, car, etc.). If Selling Your Home.
you are reporting a loss attributable to a federally declared disaster, and If you exclude the gain and the entire gain is excludable, don't report
you checked the box and entered the FEMA disaster declaration number the casualty on Form 4684. If the gain is more than you can exclude,
in the space provided above line 1, enter the ZIP code for the property reduce the insurance or other reimbursement by the amount of the
most affected on the line for Property .A exclusion and enter the result on line 3. Attach a statement showing the
full amount of insurance or other reimbursement and the amount of the
exclusion. You may be able to postpone reporting the excess gain if you
Line 2 buy replacement property. See Gain on Reimbursement and Gains
Realized on Homes in Disaster Areas, earlier.
Cost or other basis usually means original cost plus improvements.
Subtract any postponed gain from the sale of a previous main home. Line 4
Special rules apply to property received as a gift or inheritance. See
Basis Other Than Cost in Pub. 551 for details. If you inherited the
property from someone who died in 2010 and the executor of the If you are entitled to an insurance payment or other reimbursement for
decedent's estate made the election to file Form 8939, Allocation of any part of a casualty or theft loss but you choose not to file a claim for
Increase in Basis for Property Received From a Decedent, refer to the the loss, you can't realize a gain from that payment or reimbursement.
information provided by the executor or see Pub. 4895, Tax Treatment of Therefore, figure the gain on line 4 by subtracting your cost or other basis
Property Acquired From a Decedent Dying in 2010, available at in the property (line 2) only from the amount of reimbursement you
IRS.gov/Pub/IRS-Prior/p4895--2011.pdf. actually received. Enter the result on line 4, but don't enter less than
zero.
Line 3 If you filed a claim for reimbursement but didn't receive it until after
the year of the casualty or theft, include the gain in your income in the
Enter on this line the amount of insurance or other reimbursement you year you received the reimbursement.
received or expect to receive for each property. Include your insurance
coverage whether or not you are filing a claim for reimbursement. For Lines 5 and 6
example, your car worth $2,000 is totally destroyed in a flood in an area
designated as a federal disaster. You are insured with a $500 deductible, Fair market value (FMV) is the price at which the property would be sold
but decide not to report it to your insurance company because you are between a willing buyer and a willing seller, each having knowledge of
afraid the insurance company will cancel your policy. In this case, enter the relevant facts. The difference between the FMV immediately before
$1,500 on this line. the casualty or theft and the FMV immediately after represents the
decrease in FMV because of the casualty or theft.
If you expect to be reimbursed but haven't yet received payment, you
must still enter the expected reimbursement from the loss. If, in a later tax The FMV of property after a theft is zero if the property isn't
year, you determine with reasonable certainty that you won't be recovered.
reimbursed for all or part of the loss, you can deduct for that year the
amount of the loss that isn't reimbursed. FMV is generally determined by a competent appraisal. The
appraiser's knowledge of sales of comparable property about the same
Types of reimbursements. Insurance is the most common way to be time as the casualty or theft, knowledge of your property before and after
reimbursed for a casualty or theft loss, but if: the occurrence, and the methods of determining FMV are important
• Part of a federal disaster loan is forgiven, the part you don't have to elements in proving your loss.
pay back is considered a reimbursement;
• The person who leases your property must make repairs or must The appraised value of property immediately after the casualty must
repay you for any part of a loss, the repayment and the cost of the be adjusted (increased) for the effects of any general market decline that
repairs are considered reimbursements; may occur at the same time as the casualty or theft. For example, the
• A court awards you damages for a casualty or theft loss, the amount value of all nearby property may become depressed because it is in an
you are able to collect, minus lawyers' fees and other necessary area where such occurrences are commonplace. This general decline in
expenses, is a reimbursement; market value isn't part of the property's decrease in FMV as a result of
• You accept repairs, restoration, or cleanup services provided by the casualty or theft.
relief agencies, it is considered a reimbursement; or
• A bonding company pays you for a theft loss, the payment is also Replacement cost or the cost of repairs isn't necessarily FMV.
considered a reimbursement. However, you may be able to use the cost of repairs to the damaged
Lump-sum reimbursement. If you have a casualty or theft loss of property as evidence of loss in value if:
several assets at the same time and you receive a lump-sum • The repairs are actually made;
reimbursement, you must divide the amount you receive among the • The repairs are necessary to restore the property to the condition it
assets according to the fair market value of each asset at the time of the was in immediately before the casualty;
loss. • The amount spent for repairs isn't excessive;
• The repairs only correct the damage caused by the casualty; and
Grants, gifts, and other payments. Grants and other payments you • The value of the property after the repairs isn't, as a result of the
receive to help you after a casualty are considered reimbursements only repairs, more than the value of the property immediately before the
if they must be used specifically to repair or replace your property. Such casualty.
payments will reduce your casualty loss deduction. If there are no
conditions on how you have to use the money you receive, it isn't a To figure a casualty loss to real estate not used in a trade or business,
reimbursement. or for income-producing purposes, measure the decrease in value of the
property as a whole. All improvements, such as buildings, trees, and
Instructions for Form 4684 (2023) 5

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shrubs, are considered together as one item. Figure the loss separately 1040), line 4. Estates and trusts include this amount on Schedule D
for other items. For example, figure the loss separately for each piece of (Form 1041), line 4.
furniture. • Combine your long-term gains with your long-term losses and
include the net long-term gain or (loss) on Schedule D (Form 1040),
Safe harbor methods for determining casualty and theft losses. line 11. Estates and trusts include this amount on Schedule D (Form
See Revenue Procedure 2018-08, 2018-2 I.R.B. 286, available at 1041), line 11.
IRS.gov/IRB/2018-02_IRB, for safe harbor methods that you may use in
determining the amount of your casualty and theft losses for your home The holding period for long-term gains and losses is more than 1
and personal belongings. year. For short-term gains and losses, it is 1 year or less. To figure the
Safe harbor reporting requirements for Form 4684. If you use holding period, begin counting on the day after you received the property
one of the safe harbor methods provided in Revenue Procedure and include the day the casualty or theft occurred.
2018-08, you must attach a statement to Form 4684 stating that you Generally, if you inherit property, you are considered to have held the
used Revenue Procedure 2018-08 to determine the amount of your property for longer than 1 year, regardless of how long you actually held
casualty loss. Include the specific safe harbor method used. When it. If you inherited property from someone who died in 2010 and the
completing Form 4684, do not enter an amount on line 5 or line 6 for executor made the election to file Form 8939, refer to the information
each property. Instead, enter the decrease in the FMV determined in the provided by the executor or see Pub. 4895, available at IRS.gov/Pub/
relevant safe harbor method on line 7. IRS-Prior/p4895--2011.pdf, to determine your holding period.
Net loss. If line 13 is less than line 14 and you have qualified disaster
Line 11 losses subject to the $500 reduction on line 11 on any Form(s) 4684:
• Subtract line 13 from line 14. Enter the smaller of this difference or
If you sustained a qualified disaster loss, including those sustained in the amount on line 12 of the Form 4684 listing those qualified
2023, add the amounts on line 4 of all Forms 4684. Compare the sum disaster losses. The amount is your net qualified disaster loss. If you
with the amount on line 10. If the amount on line 10 is larger, enter $500 are itemizing your deductions, enter the amount on line 16 of
on line 11 of the Form 4684 reporting the qualified disaster losses. Schedule A (Form 1040), or line 7 of Schedule A (Form 1040-NR),
and “Net Qualified Disaster Loss.” If you are claiming the increased
If the amount on line 10 is smaller, or if you are reporting a disaster standard deduction, enter the amount on line 16 of Schedule A
loss, enter $100 and complete the remainder of the form without (Form 1040), or line 7 of Schedule A (Form 1040-NR), and “Net
applying the special rules for qualified disaster losses. Qualified Disaster Loss.” Also, do not include this amount on line 15
of Schedule A (Form 1040), or line 6 of Schedule A (Form
1040-NR), if you are not itemizing your deductions.
Line 13
Complete the rest of Schedule A either by:
Enter on this line the amounts from line 4 of all Forms 4684 reporting a • Itemizing other deductions as usual; or
gain. • Including the amount of your standard deduction on the dotted line
next to Schedule A (Form 1040), line 16, or Schedule A (Form
1040-NR), line 7. Also, enter “Standard Deduction Claimed With
Line 14 Qualified Disaster Loss” on that dotted line next to this amount. See
Note. An exception to the rule that disallows a deduction for personal the instructions for Schedule A (Form 1040) or the Instructions for
casualty and theft losses other than those attributable to federally Form 1040-NR for more information. If you are also filing Form 6251,
declared disasters applies if you have personal casualty gains reported see Taxpayers who also file the 2023 Form 6251, Alternative
on line 13 of your Form 4684. You will deduct the portion of your personal Minimum Tax for Individuals, next.
casualty losses not attributable to a federally declared disaster to the Don’t complete the rest of this section if all your personal casualty
extent the loss doesn't exceed your personal casualty gains. Any and theft losses are qualified disaster losses subject to the $500
remaining personal casualty gains will be used to reduce the amount of reduction.
your deductible federal casualty losses. If line 13 is less than line 14 and you have no qualified disaster losses
subject to the $500 reduction on line 11 of your Form 4684, enter zero
If you have personal casualty losses that are not attributable to a and go to line 16 and complete the rest of the section.
federally declared disaster, such as those described above, use Taxpayers who also file the 2023 Form 6251, Alternative
Worksheet 1-1 to calculate the amount you should enter on line 14. Minimum Tax for Individuals. If you file Schedule A (Form 1040) or
Otherwise, add the amounts on line 12 of all Forms 4684 and enter that Schedule A (Form 1040-NR) just to claim an increased standard
total on line 14. deduction on Form 1040, 1040-SR, or 1040-NR, due to a loss you
suffered related to property in a federally declared disaster area, enter
Worksheet 1-1. Losses Not Attributable to a zero on Form 6251, line 2a. Next, include the amount of your standard
deduction (before it is increased by any net qualified disaster loss) in the
Federally Declared Disaster—Line 14 total on line 3. This is the amount you listed on the dotted line next to
1. Add the amounts from line 12 of all Forms 4684 Schedule A (Form 1040), line 16 or Schedule A (Form 1040-NR), line 7.
reporting losses not attributable to a federally If you filed Schedule A to itemize your deductions, then don’t make
declared disaster . . . . . . . . . . . . . . . . . 1. this adjustment.
2. Add the amounts from line 12 of all Forms 4684
reporting losses attributable to a federally
declared disaster. . . . . . . . . . . . . . . . . . 2. Line 17
3. Enter the smaller of line 1 or line 13 of Form
4684 . . . . . . . . . . . . . . . . . . . . . . . . . 3. Estates and trusts figure AGI in the same way as individuals, except that
4. Add lines 2 and 3. Enter the result here and on the costs of administration are allowed in figuring AGI.
Form 4684, line 14 . . . . . . . . . . . . . . . . . 4.
Section B—Business and Income-Producing
Property
You can no longer claim any miscellaneous itemized deductions.
Line 15 ! As a result, business casualty and theft losses of property used
Note. You will complete line 15 differently depending on whether you CAUTION in performing services as an employee cannot be deducted or
have a net gain or loss and whether you have a qualified disaster loss. applied in the netting process to offset gains.
Net gain. If line 13 is more than line 14, you have a net gain. Report the Use a separate column of Part I, lines 20 through 27, to show each
gain as follows. item lost or damaged from a single casualty or theft described on line 19.
• Combine your short-term gains with your short-term losses and If more than four items were lost or damaged, use additional sheets
include the net short-term gain or (loss) on Schedule D (Form following the format of Part I, lines 19 through 27.

6 Instructions for Form 4684 (2023)

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Use a separate Form 4684, Section B, Part I, for each casualty or Line 19
theft involving property used in a trade or business or for
income-producing purposes. Use one Section B, Part II, to combine all
Sections B, Part I. If you are claiming a loss from a fraudulent investment arrangement and
you are not filling out Section C, you must enter the name, taxpayer
For details on the treatment of casualties or thefts to business or identification number (if known), and address (if known) of the individual
income-producing property, including rules on the loss of inventory or entity that conducted the fraudulent arrangement. Complete the rest of
through casualty or theft, see Figuring a Loss in Pub. 547. Section B, Part I.

Home Used for Business or Rented Out Line 20

If you had a casualty or theft loss involving a home you used for business Cost or adjusted basis usually means original cost plus improvements,
or rented out, your deductible loss may be limited. First, complete Form minus depreciation allowed or allowable (including any section 179
4684, Section B, lines 19 through 26. If the loss involved a home used for expense deduction), amortization, depletion, etc. Special rules apply to
a business for which you are filing Schedule C (Form 1040), Profit or property received as a gift or inheritance. See Basis Other Than Cost in
Loss From Business, figure your deductible casualty or theft loss on Pub. 551 for details. If you inherited the property from someone who died
Form 8829, Expenses for Business Use of Your Home (if you are using in 2010 and the executor of the decedent's estate made the election to
Form 8829). Enter on Form 4684, line 27, the deductible loss from Form file Form 8939, refer to the information provided by the executor or see
8829, line 35, and “See Form 8829” above line 27. For a home you Pub. 4895, available at IRS.gov/Pub/IRS-Prior/p4895--2011.pdf.
rented out or used for a business for which you aren't filing Schedule C
(Form 1040), see section 280A(c)(5) to figure your deductible loss. If you dispose of a portion of a Modified Accelerated Cost Recovery
Attach a statement showing your computation of the deductible loss, System (MACRS) asset as a result of a casualty event, enter the
enter that amount on line 27, and enter “See attached statement” above adjusted basis of the disposed portion of the asset. MACRS assets
line 27. include buildings (and their structural components) and other tangible
If you used the simplified method to determine your deductible depreciable property placed in service after 1986 that is used in a trade
expenses for business use of your home for 2023, figure the casualty or or business or for the production of income. The adjusted basis of the
theft loss for the home office in Section A instead of on Form 8829 and disposed portion of the asset is the adjusted depreciable basis of that
Section B. disposed portion at the time of its disposition, as determined under the
applicable convention. You must reduce the basis and the depreciation
reserve of the MACRS asset by the basis and depreciation reserve
Property Used in a Passive Activity attributable to the disposed portion as of the first day of the tax year,
before you compute the depreciation deduction for the current year. To
A gain or loss from a casualty or theft of property used in a passive figure the depreciation deductions for the remaining MACRS asset and
activity isn't taken into account in determining the loss from a passive the disposed portion, see the instructions for Form 4562, line 19, column
activity unless losses similar in cause and severity recur regularly in the (g). For more information, see Regulations section 1.168(i)-8. For partial
activity. See Form 8582, Passive Activity Loss Limitations, and its dispositions from casualties to MACRS assets accounted for in a
instructions for details. General Asset Account, see Regulations section 1.168(i)-1.

Losses From Ponzi-Type Investment Schemes Line 21

The IRS has issued the following guidance to assist taxpayers who are See the instructions for line 3, earlier.
victims of losses from Ponzi-type investment schemes.
• Revenue Ruling 2009-9, 2009-14 I.R.B. 735 (available at
IRS.gov/irb/2009-14_IRB#RR-2009-9). Line 22
• Revenue Procedure 2009-20, 2009-14 I.R.B. 749 (available at
IRS.gov/irb/2009-14_IRB#RP-2009-20). See the instructions for line 4, earlier.
• Revenue Procedure 2011-58, 2011-50 I.R.B. 849 (available at
IRS.gov/irb/2011-50_IRB#RP-2011-58).
Lines 23 and 24
If you qualify to use Revenue Procedure 2009-20, as modified by
Revenue Procedure 2011-58, and choose to follow the procedures in the See the instructions for lines 5 and 6 for details on determining FMV.
guidance, first fill out Section C to determine the amount to enter on Loss on each item figured separately. Unlike a casualty loss to
Section B, line 28. Skip lines 19 through 27. Section C of Form 4684 personal-use real estate, in which all improvements are considered one
replaces Appendix A in Revenue Procedure 2009-20. You don't need to item, a casualty loss to business or income-producing property must be
complete Appendix A. figured separately for each item. For example, if casualty damage occurs
to both a building and to trees on the same piece of real estate, measure
For more information, see the instructions for Section C, later, and the the loss separately for the building and for the trees.
above revenue ruling and revenue procedures.
If you choose not to use the procedures in Revenue Procedure Line 28
2009-20, you may claim your theft loss by filling out Section B, lines 19
through 39, as appropriate. If the amount on line 28 includes losses on property held 1 year or less,
and losses on property held for more than 1 year, you must allocate the
Section 179 Property of a Partnership or S amount between lines 29 and 34 according to how long you held each
property. Enter on line 29 all gains and losses on property held 1 year or
Corporation less. Enter on line 34 all gains and losses on property held more than 1
year, except as provided in the instructions for line 33.
Partnerships and S corporations that have a casualty or theft involving
property for which the section 179 expense deduction was previously If you are claiming a theft loss from a Ponzi-type investment scheme
claimed and passed through to the partners or shareholders must not and are following the procedures in Revenue Procedure 2009-20,
use Form 4684 to report the transaction. Instead, see the Instructions for 2009-14 I.R.B. 749, enter on line 28 the amount from Section C, line 51.
Form 4797 for details on how to report it. Partners and S corporation Don't complete Section B, lines 19 through 27, of Form 4684 for that
shareholders who receive a Schedule K-1 reporting such a transaction loss. You must fill out Section B, Part II.
should see the Instructions for Form 4797 for details on how to figure the
amount to enter on Form 4684, line 20.
Instructions for Form 4684 (2023) 7

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Part II, Column (a) Line 38a

On lines 29 and 34, use a separate line to identify each casualty or theft. Taxpayers, other than partnerships and S corporations, if Form 4797 isn't
If you have more than two casualties or thefts, attach an additional sheet otherwise required, enter the amount from this line on the appropriate
following the format of lines 29 and 34. line for the form you are filing.
Example. Ishmael is claiming two casualty losses for his business Form 1040, 1040-SR, or 1040-NR filers. Enter this amount on your
property. One loss is due to a fire in July and the other loss is due to a Schedule 1 (Form 1040), line 4. Next to that line, enter “4684.”
hurricane in October. He fills out one Section B, Part I, for the fire and
another separate Section B, Part I, for the hurricane. He held the Form 1120, 1120-F, and 1120-POL filers. See the Instructions for
property for 1 year or less. He fills out only one Section B, Part II, to Schedule D (Form 1120) for where to report this amount.
summarize the two losses he is claiming. On line 29, he enters “Fire” on
the first line and “Hurricane” on the second line. Section C—Theft Loss Deduction for Ponzi-Type
If you are claiming a theft loss from a Ponzi-type investment Investment Scheme Using the Procedures in
TIP scheme, enter the name of the individual or entity that Revenue Procedure 2009-20
conducted the fraudulent arrangement. Fill out Section C if you claim a theft loss deduction for a Ponzi-type
investment scheme and you meet both of the following conditions.
• You qualify to use Revenue Procedure 2009-20, as modified by
Part II, Column (b)(i) Revenue Procedure 2011-58.
• You choose to follow the procedures in the guidance.
Enter the part of line 28 from trade, business, rental, or royalty property.
If you meet both conditions, fill out Section C in lieu of Appendix A in
Revenue Procedure 2009-20.
Part II, Column (b)(ii)
For more information about claiming a theft loss deduction from a
Enter the part of line 28 from income-producing property. Ponzi-type investment scheme, see the following guidance.
Income-producing property is property held for investment, such as • Revenue Ruling 2009-9, 2009-14 I.R.B. 735 (available at
stocks, notes, bonds, gold, silver, vacant lots, and works of art. IRS.gov/irb/2009-14_IRB#RR-2009-9).
• Revenue Procedure 2009-20, 2009-14 I.R.B. 749 (available at
IRS.gov/irb/2009-14_IRB#RP-2009-20).
Part II, Column (c) • Revenue Procedure 2011-58, 2011-50 I.R.B. 849 (available at
IRS.gov/irb/2011-50_IRB#RP-2011-58).
On line 29, enter the part of line 22 that is from property held for 1 year or Don't fill out Section C if you don't qualify to use the procedures
less. ! in Revenue Procedure 2009-20, as modified by Revenue
CAUTION Procedure 2011-58, or you don't choose to follow them. Instead,
On line 34, enter the part of line 22 that is from property held for more go to the instructions for Section B.
than 1 year.

Line 30 Line 40

Include in the total any amounts from the additional sheet you attached Enter the initial amount of cash or basis of property that you invested in
because you had more than two casualties or thefts on line 29. the investment arrangement. Don't include any of the following on this
line, line 41, or line 42.
• Amounts borrowed from the responsible group and invested in the
Line 31 specified fraudulent arrangement, to the extent the borrowed
amounts weren't repaid at the time the theft was discovered.
If Form 4797, Sales of Business Property, isn't otherwise required, enter • Amounts such as fees that were paid to the responsible group and
the amount from this line on your Schedule 1 (Form 1040), line 4. Next to deducted for federal income tax purposes.
that line, enter “Form 4684.” • Amounts reported to you (the qualified investor) as taxable income
that weren't included in gross income on the investor's federal
income tax returns.
Line 32 • Cash or property that you (the qualified investor) invested in a fund
or other entity (separate from you (the qualified investor) for federal
Estates and trusts, enter the amount from line 32 on the “Other income tax purposes) that invested in a specified fraudulent
deductions” line of your tax return. Partnerships, enter on Form 1065, arrangement.
Schedule K, line 13d. S corporations, enter on Form 1120-S,
Schedule K, line 12d. Next to that line, enter “Form 4684.” For definitions of responsible group, specified fraudulent
arrangement, and qualified investor, see Section 4 of Revenue
Procedure 2009-20.
Line 33
Line 41
If you had a casualty or theft gain from certain trade, business, or
income-producing property held more than 1 year, you may have to
recapture part or all of the gain as ordinary income. See the instructions Enter the amounts of cash or the basis of property that you invested after
for Form 4797, Part III, for more information on the types of property you made the initial investment (including amounts reinvested).
subject to recapture. If recapture applies, complete Form 4797, Part III,
and this line, instead of Form 4684, line 34. Line 42

Line 35 Enter the total amounts of net income (for example, interest and
dividends minus expenses) from the specified fraudulent arrangement
Include in the total any amounts from the additional sheet you attached that, consistent with information received from that arrangement, you
because you had more than two casualties or thefts. included in income for federal tax purposes for all tax years before the
discovery year, including tax years for which a refund is barred by the
statute of limitations.

8 Instructions for Form 4684 (2023)

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Discovery year.   The discovery year is the tax year when one of the      Section D—Election To Deduct Federally 
following occurs.                                                         Declared Disaster Loss in Preceding Tax Year
• The indictment, information, or complaint described in section 
  4.02(1) or (2) of Revenue Procedure 2009-20 (as modified by             Read the discussion under Disaster Losses, earlier. Then fill out 
  Revenue Procedure 2011-58) is filed.                                    Section D if you want to elect to deduct a disaster loss on your tax return 
• The complaint or similar document described in section 4.02(3) of       for the preceding year. You may also fill out Section D if you want to 
  Revenue Procedure 2009-20 (as modified by Revenue Procedure             revoke a previous election to deduct a disaster loss in the tax year 
  2011-58) is filed, or the death of the lead figure occurs, whichever is immediately preceding the disaster year.
  later.
                                                                          Part I—Election Statement
Line 44
                                                                          Fill out Part I if you want to make an election to deduct a loss attributable 
                                                                          to a federally declared disaster and that occurred in a federally declared 
Enter the total amount of cash or property that you withdrew from the     disaster area in the tax year immediately preceding the tax year the loss 
investment arrangement in all years (whether designated as income or      was sustained. By making this election, you agree not to deduct the loss 
principal).                                                               for the disaster year.
Line 45                                                                   Attach Section D to your original return or amended return for the tax 
                                                                          year immediately preceding the tax year the loss was sustained to claim 
                                                                          the disaster loss deduction.
This is the amount of your investment that is eligible for a deduction 
before any actual or potential recoveries are taken into account.         You must make this election on or before the date that is 6 months 
                                                                          after the regular due date for filing your original return (without 
Line 46                                                                   extensions) for the disaster year.
Potential third-party recovery. This is the amount of all actual or 
potential claims for recovery, as of the last day of the discovery year   Part II—Revocation of Prior Election
(defined earlier), that are not from potential insurance or Securities 
Investor Protection Corporation (SIPC) recovery, or a potential direct    Fill out Part II if you want to revoke a prior election to deduct a loss 
recovery.                                                                 attributable to a federally declared disaster and that occurred in a 
                                                                          federally declared disaster area in the tax year immediately preceding 
Potential insurance/SIPC recovery.   This is the total of all actual or   the tax year the loss was sustained.
potential claims for reimbursement that, as of the last day of the 
discovery year, are attributable to:                                      Attach Section D to your amended return for the tax year immediately 
• Insurance policies in your name that protect you from this type of      preceding the tax year the loss was sustained to revoke the previous 
  loss;                                                                   disaster loss deduction. You must file this amended return for the 
• Contractual arrangements, other than insurance, that guaranteed or      preceding year on or before the date you file the original return or 
  otherwise protected against this type of loss; or                       amended return for the disaster year on which you claim the disaster 
• Amounts payable from SIPC, as advances for customer claims              loss.
  under the Securities Investor Protection Act of 1970, or by a similar 
  entity under a similar provision.                                       You can revoke the prior election on or before the date that is 90 days 
Potential direct recovery.  This is the amount of all actual or potential after the due date for making the election.
claims for recovery, as of the last day of the discovery year (defined 
earlier), against the responsible individual or group.                    Paperwork Reduction Act Notice.           We ask for the information on this 
                                                                          form to carry out the Internal Revenue laws of the United States. You are 
                                                                          required to give us the information. We need it to ensure that you are 
Line 48                                                                   complying with these laws and to allow us to figure and collect the right 
                                                                          amount of tax.
Enter the amounts you actually received as a reimbursement or recovery    You aren't required to provide the information requested on a form 
from any source. Don't include amounts that are potential direct          that is subject to the Paperwork Reduction Act unless the form displays a 
recoveries (defined earlier) or potential third-party recoveries (defined valid OMB control number. Books or records relating to a form or its 
earlier).                                                                 instructions must be retained as long as their contents may become 
                                                                          material in the administration of any Internal Revenue law. Generally, tax 
Line 49                                                                   returns and return information are confidential, as required by section 
                                                                          6103.
Enter the amount of potential insurance/SIPC recovery (defined earlier).  The time needed to complete and file this form will vary depending on 
                                                                          individual circumstances. The estimated burden for individual taxpayers 
                                                                          filing this form is approved under OMB control number 1545-0074 and is 
Line 51                                                                   included in the estimates shown in the instructions for their individual 
                                                                          income tax return. The estimated burden for all other taxpayers who file 
Enter the amount from line 51 on line 28 of Section B. Don't complete     this form is shown below.
lines 19 through 27 for this loss. Then complete Section B, Part II.
    If you had other casualties or thefts, fill out a separate Section B, Recordkeeping. . . . . . . . . . . . . . .        2 hr., 37 min.
TIP Part I, for them.                                                     Learning about the law or the 
                                                                          form. . . . . . . . . . . . . . . . . . . . . . .                   24 min.
Part II                                                                   Preparing the form. . . . . . . . . . . .         1 hr., 58 min.
                                                                          Copying, assembling, and 
Read the statements and declarations in this part carefully. Enter the    sending the form to the IRS. . . . .              1 hr., 3 min.
required information in the spaces provided. You are agreeing to these 
statements and declarations when you sign your tax return. The 
information you enter in this part will be used to verify the fraudulent 
investment arrangement.                                                   If you have comments concerning the accuracy of these time 
                                                                          estimates or suggestions for making this form simpler, we would be 
Instructions for Form 4684 (2023)                                                                                                                      9

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

happy to hear from you. See the instructions for the tax return with which 
this form is filed.

10                                                                         Instructions for Form 4684 (2023)

PDF file checksum: 579259166

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