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Department of the Treasury
Internal Revenue Service
2022

Instructions for Form 4684

Casualties and Thefts

Section references are to the Internal Revenue Code you are an individual, casualty or theft losses of Opportunity Zones Frequently Asked
unless otherwise noted. personal-use property are deductible only if the Questions.
loss is attributable to a federally declared
General Instructions disaster. Deferral of gain invested in a QOF. If you
realize a gain from an actual, or deemed, sale
Personal casualty and theft losses or exchange with an unrelated person and
attributable to a federally declared disaster are during the 180-day period beginning on the
Future Developments subject to the $100 per casualty and 10% of date realizing the gain, invested an amount of
For the latest information about developments your adjusted gross income (AGI) reductions the gain in a QOF, you may be able to elect to
related to Form 4684 and its instructions, such unless they are attributable to a qualified temporarily defer part or all of the gain that
as legislation enacted after they were disaster loss. would otherwise be included in income. If you
published, go to IRS.gov/Form4684.
Personal casualty and theft losses make the election, the gain is included in
attributable to a qualified disaster loss are not taxable income only to the extent, if any, that
Reminders subject to the 10% of the AGI reduction and the the amount of realized gain exceeds the
Mandatory 60-day postponement. Certain $100 reduction is increased to $500. aggregate amount invested in a QOF during the
taxpayers affected by a federally declared An exception to the rule above limiting the 180-day period beginning on the date the gain
disaster that occurs after December 20, 2019, personal casualty and theft loss deduction to was realized.
may be eligible for a mandatory 60-day losses attributable to a federally declared How to report. Report the gain as it would
postponement for certain tax deadlines such as disaster applies if you have personal casualty otherwise be reported if you were not making
filing or paying income, excise, and gains for the tax year. In this case, you will the election. Report the election for the amount
employment taxes; and making contributions to reduce your personal casualty gains by any invested in a QOF on Form 8949. See Form
a traditional IRA or Roth IRA. For more casualty losses not attributable to a federally 8949 for how to make the election. You will
information, see Pub. 547. declared disaster. Any excess gain is used to need to attach Form 8997 annually until you
reduce losses from a federally declared dispose of the QOF investment. See the Form
How to report the loss on Form 1040-X. You disaster. 8997 instructions for more information.
should adjust your deductions on Form 1040-X.
The Instructions for Form 1040-X show how to For more information, see Disaster Losses,
do this. Explain the reasons for your adjustment later, the instructions for line 14, and Pub. 547. Purpose of Form
and attach Form 4684 to show how you figured Federal Emergency Management Agency Use Form 4684 to report gains and losses from
your loss. See Figuring a Loss in Pub. 547. (FEMA) disaster declaration numbers. If casualties and thefts. Attach Form 4684 to your
If the damaged or destroyed property was you are reporting a casualty or theft loss tax return.
nonbusiness property and you didn’t itemize attributable to a federally declared disaster,
your deductions on your original return, you check the box and enter the DR or EM
must first determine whether the casualty loss declaration number assigned by FEMA in the Definitions
deduction now makes it advantageous for you space provided above line 1 on your 2022 Form Three types of casualty losses are described in
to itemize. It is advantageous to itemize if the 4684. For additional information, see FEMA these instructions.
total of the casualty loss deduction and any disaster declaration numbers, later. 1. Federal Casualty Losses.
other itemized deductions is more than your AMT adjustment for standard deduction 2. Disaster Losses.
standard deduction (and increased standard made retroactively inapplicable to net 3. Qualified Disaster Losses.
deduction amount, if applicable). If you itemize, qualified disaster losses. The AMT
attach Schedule A (Form 1040) or Schedule A adjustment for the standard deduction doesn't All three types of losses refer to federally
(Form 1040-NR), and Form 4684 to your apply to the increase in the standard deduction declared disasters, but the requirements for
amended return. Fill out Form 1040-X to that is attributable to a net disaster loss. See each loss vary. A federally declared disaster is
refigure your tax to find your refund. Taxpayers who also file the 2022 Form 6251, a disaster determined by the President of the
Special rules and return procedures expan- Alternative Minimum Tax for Individuals, later, United States to warrant assistance by the
ded for claiming qualified disaster-related for more information. federal government under the Robert T.
Stafford Disaster Relief and Emergency
personal casualty losses. The Taxpayer Electing large partnership rules repealed. Assistance Act (Stafford Act). A federally
Certainty and Disaster Tax Relief Act of 2019 Rules relating to electing large partnerships declared disaster includes (a) a major disaster
and the Taxpayer Certainty and Disaster Tax have been repealed. References to electing declaration, or (b) an emergency declaration
Relief Act of 2020 expanded the special rules large partnerships have been revised under the Stafford Act.
and return procedures for personal casualty accordingly on Form 4684 and in these
losses attributable to certain major federal instructions. See Section B—Business and Federal casualty loss. A federal casualty loss
disasters that were declared in 2018, 2019, and Income-Producing Property, later. is an individual’s casualty or theft loss of
2020. personal-use property that is attributable to a
Qualified disaster losses in those tax years Special rules for capital gains invested in federally declared disaster. The casualty loss
may be claimed on Form 4684. See Qualified qualified opportunity funds (QOFs). If you must occur in a state receiving a federal
disaster loss, later, for more information. have a capital gain for 2022, you can invest that disaster declaration. If you suffered a federal
gain into a QOF and elect to defer part or all of casualty loss, you are eligible to claim a
You may have to file an amended the gain that you would otherwise include in casualty loss deduction. If you suffered a
TIP return on Form 1040-X to claim these income until December 31, 2026. You may also casualty or theft loss of personal-use property
benefits on your 2018, 2019, and/or be able to permanently exclude gain from the that was not attributable to a federally declared
2020 returns. Form 1040-X is available at sale or exchange of an investment in a QOF if disaster, it is not a federal casualty loss, and
IRS.gov/Form1040X. Prior revisions of Form the investment is held for at least 10 years. For you may not claim a casualty loss deduction
4684 are available at IRS.gov/Form4684. information about how to elect to use these unless the exception applies. See the Caution
special rules, see the Instructions for Form under Losses You Can Deduct, later.
Limitation on personal casualty and theft 8949. For additional information, see
losses. For tax years 2018 through 2025, if

Dec 30, 2022 Cat. No. 12998Z

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

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To determine the amount to deduct for a            for the preceding year (that is, to an amended      Increased standard deduction reporting next for 
disaster loss, you must take into account as       2021 return for the revocation of a 2022            more information.
reimbursements any benefits you received or        disaster year election). See 
which you have a reasonable possibility of         Section D—Election To Deduct Federally              Increased standard deduction reporting.          If 
receiving from federal or state programs to        Declared Disaster Loss in Preceding Tax Year,       you have a net qualified disaster loss and aren’t 
restore your property.                             later.                                              itemizing your deductions, you can claim an 
                                                                                                       increased standard deduction using 
Disaster year. The disaster year is the tax          Your amended return revoking the election         Schedule A (Form 1040) or Schedule A (Form 
year in which you sustained the loss attributable  must be filed on or before the date that is 90      1040-NR), by doing the following.
to a federally declared disaster. Generally, a     days after the due date for making the election 
disaster loss is sustained in the year the         and on or before the date you file any return or    1.      Enter the amount from Form 4684, 
disaster occurred. However, a disaster loss        amended return for the year that includes the       line 15, on the dotted line next to line 16 on 
may also be sustained in a year after the          disaster loss.                                      Schedule A (Form 1040), or line 7 of 
                                                                                                       Schedule A (Form 1040-NR), and the 
disaster occurred. For example, if a claim for       Your amended return should refigure your          description, “Net Qualified Disaster Loss.”
reimbursement exists for which there is a          tax liability as a result of revoking the election. 
reasonable prospect of recovery, no part of the    You must pay or make arrangements to pay any        2.      Also, enter on the dotted line next to 
loss for which reimbursement may be received       tax and interest due as a result of the             line 16 of Schedule A (Form 1040) or line 7 of 
is sustained until it can be ascertained with      revocation.                                         Schedule A (Form 1040-NR), your standard 
reasonable certainty whether you will be                                                               deduction amount and the description, 
reimbursed.                                        Home made unsafe by disaster.     If your           “Standard Deduction Claimed With Qualified 
                                                   home was located in a disaster area and your        Disaster Loss.”
Example.    In December 2021, your car was         state or local government ordered you to tear it    3.      Combine these two amounts and enter 
destroyed in severe flooding that occurred in      down or move it because it was no longer safe       the total in the entry space on line 16 of 
the area where you live. The area where you        to use as a home due to the disaster, the           Schedule A (Form 1040), or line 7 of 
lived was designated by FEMA to be eligible for    resulting loss in value is treated as a disaster    Schedule A (Form 1040-NR), and on Form 
public or individual assistance (or both). You     loss. The order for you to tear down or move the    1040, 1040-SR, or 1040-NR, line 12.
immediately filed a claim for reimbursement        home must have been issued within 120 days 
with your insurance company. There was a           after the area was officially declared a disaster           Nonresident aliens cannot claim the 
reasonable prospect that you would recover the     area.                                               !       standard deduction. However, there is 
full amount of your loss. The claim was settled      For purposes of figuring the disaster loss,       CAUTION an exception. Students or business 
in January 2022 when your insurance company        use the value of your home before you moved it      apprentices, who file Form 1040-NR, may be 
reimbursed you for only half of your loss. The     or tore it down as its fair market value after the  able to take a standard deduction if they are 
disaster year is 2022 (not 2021 when the loss      casualty.                                           eligible for benefits under Article 21(2) of the 
occurred). Your loss was sustained in 2022                                                             United States-India Income Tax Treaty. They 
because that’s when it became reasonably           Qualified disaster losses.   A qualified            will enter the standard deduction amount found 
certain whether you would be reimbursed. You       disaster loss also includes an individual's         for their filing status on Form 1040 or 1040-SR. 
can either deduct the unreimbursed loss on         casualty or theft loss of personal-use property     See chapter 5 of Pub. 519 and the Instructions 
your tax return for the disaster year (2022) or    that is attributable to:                            for Form 1040-NR for details.
make an election to deduct the unreimbursed        • A major disaster declared by the President 
loss on your tax return for the preceding year     under section 401 of the Stafford Act in 2016;              The alternative minimum tax 
(2021).                                            • Hurricane Harvey;                                 !       adjustment for the standard deduction 
                                                   • Tropical Storm Harvey;                            CAUTION is made retroactively inapplicable to net 
        If you realize a gain from the             • Hurricane Irma;                                   qualified disaster losses. See Taxpayers who 
!       reimbursement on your casualty loss,       • Hurricane Maria;                                  also file the 2022 Form 6251, Alternative 
CAUTION do not report the gain until the year in 
                                                   • The California wildfires in 2017 and January      Minimum Tax for Individuals, later, for more 
which that amount is received.                     2018; and                                           information.
                                                   • A major disaster that was declared by the 
Election to deduct loss in the preceding           President under section 401 of the Stafford Act     More information. See Pub. 547 for more 
year. If you have a casualty loss from a           and that occurred in 2018 and before                information about disaster losses.
federally declared disaster that occurred in an    December 21, 2019, and continued no later 
area warranting public or individual assistance    than January 19, 2020 (except those 
(or both), you can elect to deduct the loss in the attributable to the California wildfires in January Gains Realized on Homes 
tax year immediately before the disaster year. A   2018 that received prior relief).                   in Disaster Areas
list of areas warranting public or individual      • A qualified disaster loss also includes an        The following rules apply if your main home was 
assistance (or both) is available at the FEMA      individual's casualty or theft of personal-use      located in an area declared by the President of 
website at FEMA.gov/Disasters.                     property that is attributable to a major disaster   the United States to warrant federal assistance 
To make this election for a loss in disaster       that was declared by the President during the       as the result of a disaster, and the home or any 
year 2022, complete Part I of Section D on your    period between January 1, 2020, and February        of its contents were damaged or destroyed due 
2021 Form 4684 and attach it to your 2021          25, 2021. Also, this disaster must have an          to the disaster. These rules also apply to 
original or amended return that claims the         incident period that began on or after December     renters who receive insurance proceeds for 
disaster loss. See Section D—Election To           28, 2019, and on or before December 27, 2020.       damaged or destroyed property in a rented 
Deduct Federally Declared Disaster Loss in         However, this change does not include those         home that is their main home.
Preceding Tax Year, later.                         losses attributable to a major disaster that has    1.      No gain is recognized on any insurance 
You must make an election to deduct a 2022         been declared only by reason of COVID-19.           proceeds received for unscheduled personal 
disaster loss on your 2021 return on or before       For specific instructions for reporting these     property that was part of the contents of the 
the date that is 6 months after the regular due    qualified disaster losses, see Line 11 and          home.
date for filing your original return (without      Line 15, later. See IRS.gov/DisasterTaxRelief       2.      Any other insurance proceeds you 
extensions) for the disaster year. For calendar    for date-specific declarations associated with      receive for the home or its contents are treated 
year individual taxpayers, the deadline for        these disasters and for more information.           as received for a single item of property, and 
electing to take a 2022 disaster loss on your                                                          any replacement property you purchase that is 
2021 tax return is October 16, 2023.               Note.  You can deduct qualified disaster losses     similar or related in service or use to the home 
                                                   without itemizing other deductions on 
Revoking a prior election to deduct loss           Schedule A. Moreover, your net casualty loss        or its contents is treated as similar or related in 
in the preceding year. Complete Part II of         from these qualified disasters doesn’t need to      service or use to that single item of property. 
Section D if you want to revoke a 2021 disaster    exceed 10% of your adjusted gross income            Therefore, you can choose to recognize gain 
year election to deduct a federally declared       (AGI) to qualify for the deduction, but the $100    only to the extent the insurance proceeds 
disaster loss in the preceding tax year. Attach    limit per casualty is increased to $500. See        treated as received for that single item of 
the completed Section D to an amended return 

Instructions for Form 4684 (2022)                                           -3-

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property exceed the cost of the replacement Because the personal casualty losses assigned by FEMA in the space provided above
property. ! claimed under this special procedure line 1 on your 2022 Form 4684. A list of
3. If you choose to postpone any gain from CAUTION are not attributable to a federally federally declared disasters and FEMA disaster
the receipt of insurance or other reimbursement declared disaster, they're only deductible to the declaration numbers is available at FEMA.gov/
for your main home or any of its contents, the extent such losses don't exceed your personal Disasters.
period in which you must purchase replacement casualty gains. The FEMA disaster declaration number
property is extended until 4 years after the end consists of the letters “DR” and four numbers,
of the first tax year in which any part of the gain or the letters “EM” and four numbers. For
is realized. Specific Instructions example, enter “DR-4593” in the respective
entry spaces for the Washington Severe Winter
For details on how to postpone gain, see Storm.
Pub. 547. Which Sections To
Example. Your main home and its contents Complete Line 1
were completely destroyed in 2022 by a Use Section A to figure casualty or theft gains
tornado in a federally declared disaster area. In and losses for property that isn't used in a trade
2022, you received insurance proceeds of or business or for income-producing purposes. Describe the type of property (for example,
$200,000 for the home, $25,000 for Also use Section A to figure casualty or theft furniture, jewelry, car, etc.). If you are reporting
unscheduled personal property in your home, losses and gains related to the portion of your a loss attributable to a federally declared
$5,000 for jewelry, and $10,000 for a stamp home used for business if you used the disaster, and you checked the box and entered
collection. simplified method to determine your deductible the FEMA disaster declaration number in the
No gain is recognized on the $25,000 of expenses for business use of your home. space provided above line 1, enter the ZIP code
for the property most affected on the line for
insurance proceeds you received for the Use Section B to figure casualty or theft Property .A
unscheduled personal property. gains and losses for property that is used in a
The jewelry and stamp collection were kept trade or business or for income-producing
in your home and were scheduled property on purposes. Line 2
your insurance policy. Your home and its
replacement contents are considered a single If property is used partly in a trade or
item of property for the purpose of recognizing business and partly for personal purposes, Cost or other basis usually means original cost
gain on the involuntary conversion of your home such as a personal home with a rental unit, plus improvements. Subtract any postponed
and its contents. figure the personal part in Section A and the gain from the sale of a previous main home.
business part in Section B. Special rules apply to property received as a
If you reinvest $215,000 in a replacement gift or inheritance. See Basis Other Than Cost
home and its replacement contents, you can Use Section C to figure a theft loss in Pub. 551 for details. If you inherited the
elect to postpone any gain on your home, deduction from a Ponzi-type investment property from someone who died in 2010 and
jewelry, or stamp collection. scheme if you qualify to use Revenue the executor of the decedent's estate made the
If you reinvest less than the remaining Procedure 2009-20, as modified by Revenue election to file Form 8939, Allocation of
$215,000 of insurance proceeds in a Procedure 2011-58, and choose to follow the Increase in Basis for Property Received From a
replacement home and its replacement procedures in the guidance. Section C of Form Decedent, refer to the information provided by
contents, you recognize any gain to the extent 4684 replaces Appendix A in Revenue the executor or see Pub. 4895, Tax Treatment
the $215,000 of insurance proceeds exceeds Procedure 2009-20. You don't need to of Property Acquired From a Decedent Dying in
the amount you invest in a replacement home complete Appendix A. See Losses From 2010, available at IRS.gov/Pub/IRS-Prior/
and its replacement contents. Ponzi-Type Investment Schemes, later. p4895--2011.pdf.
To postpone the gain, you must purchase Use Section D to elect (or revoke an
the replacement property before 2027. Your election) to deduct in the immediately Line 3
basis in the replacement property equals its preceding tax year a loss that was attributable
cost decreased by the amount of any to a federally declared disaster and occurred in Enter on this line the amount of insurance or
postponed gain. a federally declared disaster area. other reimbursement you received or expect to
Section A—Personal-Use receive for each property. Include your
Special Treatment for insurance coverage whether or not you are
Property filing a claim for reimbursement. For example,
Losses on Deposits in Use a separate column for lines 2 through 9 to your car worth $2,000 is totally destroyed in a
Insolvent or Bankrupt show each item lost or damaged from a single flood in an area designated as a federal
casualty or theft described on line 1. If more disaster. You are insured with a $500
Financial Institutions than four items were lost or damaged, use deductible, but decide not to report it to your
You can no longer claim a loss on a additional sheets following the format of lines 1 insurance company because you are afraid the
through 9. insurance company will cancel your policy. In
! deposit in an insolvent or bankrupt this case, enter $1,500 on this line.
CAUTION financial institution as a personal
Use a separate Form 4684 through line 12
casualty or theft loss unless the exception for each casualty or theft involving property not
mentioned under the Caution under Losses You used in a trade or business or for If you expect to be reimbursed but haven't
Can Deduct, earlier, applies. See Pub. 547 for income-producing purposes. For example, use yet received payment, you must still enter the
more information. a separate Form 4684 through line 12 for expected reimbursement from the loss. If, in a
property lost or damaged due to any qualified later tax year, you determine with reasonable
disaster described in Qualified disaster loss, certainty that you won't be reimbursed for all or
Damage From Corrosive earlier. part of the loss, you can deduct for that year the
amount of the loss that isn't reimbursed.
Drywall Don't include any loss previously deducted
If you suffered property losses due to the on an estate tax return. Types of reimbursements. Insurance is the
effects of certain imported drywall installed in most common way to be reimbursed for a
homes between 2001 and 2009, under a If you are liable for casualty or theft losses to casualty or theft loss, but if:
special procedure, you may be able to claim a property you lease from someone else, see • Part of a federal disaster loan is forgiven, the
casualty loss deduction for amounts you paid to Leased property under Figuring a Loss in Pub. part you don't have to pay back is considered a
repair damage to your home and household 547. reimbursement;
appliances that resulted from corrosive drywall. FEMA disaster declaration numbers. If you • The person who leases your property must
For details, see Special Procedure for Damage are reporting a casualty or theft loss attributable make repairs or must repay you for any part of a
From Corrosive Drywall under Casualty in Pub. to a federally declared disaster, check the box loss, the repayment and the cost of the repairs
547. and enter the DR or EM declaration number are considered reimbursements;

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• A court awards you damages for a casualty Lines 5 and 6 not enter an amount on line 5 or line 6 for each
or theft loss, the amount you are able to collect, property. Instead, enter the decrease in the
minus lawyers' fees and other necessary Fair market value (FMV) is the price at which FMV determined in the relevant safe harbor
expenses, is a reimbursement; the property would be sold between a willing method on line 7.
• You accept repairs, restoration, or cleanup buyer and a willing seller, each having
services provided by relief agencies, it is knowledge of the relevant facts. The difference Line 11
considered a reimbursement; or between the FMV immediately before the
• A bonding company pays you for a theft loss, casualty or theft and the FMV immediately after If you sustained a qualified disaster loss,
the payment is also considered a represents the decrease in FMV because of the including those sustained in 2022, add the
reimbursement. casualty or theft. amounts on line 4 of all Forms 4684. Compare
Lump-sum reimbursement. If you have a the sum with the amount on line 10. If the
casualty or theft loss of several assets at the The FMV of property after a theft is zero if amount on line 10 is larger, enter $500 on
same time and you receive a lump-sum the property isn't recovered. line 11 of the Form 4684 reporting the qualified
reimbursement, you must divide the amount disaster losses.
you receive among the assets according to the FMV is generally determined by a
fair market value of each asset at the time of the competent appraisal. The appraiser's
loss. knowledge of sales of comparable property If the amount on line 10 is smaller, or if you
about the same time as the casualty or theft, are reporting a disaster loss, enter $100 and
Grants, gifts, and other payments. Grants knowledge of your property before and after the complete the remainder of the form without
and other payments you receive to help you occurrence, and the methods of determining applying the special rules for qualified disaster
after a casualty are considered reimbursements FMV are important elements in proving your losses.
only if they must be used specifically to repair or loss.
replace your property. Such payments will
Line 13
reduce your casualty loss deduction. If there The appraised value of property
are no conditions on how you have to use the immediately after the casualty must be adjusted Enter on this line the amounts from line 4 of all
money you receive, it isn't a reimbursement. (increased) for the effects of any general market Forms 4684 reporting a gain.
Use and occupancy insurance. If insurance decline that may occur at the same time as the
reimburses you for your loss of business casualty or theft. For example, the value of all
income, it doesn't reduce your casualty or theft nearby property may become depressed Line 14
loss. The reimbursement is income and is taxed because it is in an area where such Note. An exception to the rule that disallows a
in the same manner as your business income. occurrences are commonplace. This general deduction for personal casualty and theft losses
decline in market value isn't part of the other than those attributable to federally
Main home destroyed. If you have a gain property's decrease in FMV as a result of the declared disasters applies if you have personal
because your main home was destroyed, you casualty or theft. casualty gains reported on line 13 of your Form
can generally exclude the gain from your
4684. You will deduct the portion of your
income as if you had sold or exchanged your Replacement cost or the cost of repairs isn't personal casualty losses not attributable to a
home. You may be able to exclude up to necessarily FMV. However, you may be able to federally declared disaster to the extent the loss
$250,000 of the gain (up to $500,000 if married use the cost of repairs to the damaged property doesn't exceed your personal casualty gains.
filing jointly). To exclude a gain, you must as evidence of loss in value if: Any remaining personal casualty gains will be
generally have owned and lived in the property • The repairs are actually made; used to reduce the amount of your deductible
as your main home for at least 2 years during • The repairs are necessary to restore the federal casualty losses.
the 5-year period ending on the date it was property to the condition it was in immediately
destroyed. For information on this exclusion, before the casualty;
see Pub. 523, Selling Your Home. • The amount spent for repairs isn't excessive; If you have personal casualty losses that are
If you exclude the gain and the entire gain is • The repairs only correct the damage caused not attributable to a federally declared disaster,
excludable, don't report the casualty on Form by the casualty; and such as those described above, use Worksheet
4684. If the gain is more than you can exclude, • The value of the property after the repairs 1-1 to calculate the amount you should enter on
reduce the insurance or other reimbursement isn't, as a result of the repairs, more than the line 14. Otherwise, add the amounts on line 12
by the amount of the exclusion and enter the value of the property immediately before the of all Forms 4684 and enter that total on line 14.
result on line 3. Attach a statement showing the casualty.
full amount of insurance or other reimbursement Worksheet 1-1. Losses Not
and the amount of the exclusion. You may be To figure a casualty loss to real estate not
able to postpone reporting the excess gain if used in a trade or business, or for Attributable to a Federally
you buy replacement property. See Gain on income-producing purposes, measure the Declared Disaster—Line 14
Reimbursement and Gains Realized on Homes decrease in value of the property as a whole. All
in Disaster Areas, earlier. improvements, such as buildings, trees, and 1. Add the amounts from line 12
shrubs, are considered together as one item. of all Forms 4684 reporting
Figure the loss separately for other items. For losses not attributable to a
federally declared
Line 4 example, figure the loss separately for each disaster . . . . . . . . . . . . 1.
piece of furniture.
If you are entitled to an insurance payment or 2. Add the amounts from line 12
other reimbursement for any part of a casualty Safe harbor methods for determining casu- of all Forms 4684 reporting
or theft loss but you choose not to file a claim alty and theft losses. See Revenue losses attributable to a
for the loss, you can't realize a gain from that Procedure 2018-08, 2018-2 I.R.B. 286, federally declared
payment or reimbursement. Therefore, figure available at IRS.gov/IRB/2018-02_IRB, for safe disaster. . . . . . . . . . . . . 2.
the gain on line 4 by subtracting your cost or harbor methods that you may use in 3. Enter the smaller of line 1 or
other basis in the property (line 2) only from the determining the amount of your casualty and line 13 of Form
amount of reimbursement you actually theft losses for your home and personal 4684 . . . . . . . . . . . . . . 3.
received. Enter the result on line 4, but don't belongings. 4. Add lines 2 and 3. Enter the
result here and on Form 4684,
enter less than zero. Safe harbor reporting requirements for line 14 . . . . . . . . . . . . . 4.
If you filed a claim for reimbursement but Form 4684. If you use one of the safe harbor
didn't receive it until after the year of the methods provided in Revenue Procedure
casualty or theft, include the gain in your 2018-08, you must attach a statement to Form
income in the year you received the 4684 stating that you used Revenue Procedure
reimbursement. 2018-08 to determine the amount of your Line 15
casualty loss. Include the specific safe harbor Note. You will complete line 15 differently
method used. When completing Form 4684, do depending on whether you have a net gain or

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loss and whether you have a qualified disaster Taxpayers who also file the 2022 Form that amount on line 27, and enter “See attached
loss. 6251, Alternative Minimum Tax for statement” above line 27.
Individuals. If you file Schedule A (Form 1040)
Net gain. If line 13 is more than line 14, you or Schedule A (Form 1040-NR) just to claim an If you used the simplified method to
have a net gain. Report the gain as follows. increased standard deduction on Form 1040, determine your deductible expenses for
• Combine your short-term gains with your 1040-SR, or 1040-NR, due to a loss you business use of your home for 2022, figure the
short-term losses and include the net short-term suffered related to property in a federally casualty or theft loss for the home office in
gain or (loss) on Schedule D (Form 1040), declared disaster area, enter zero on Form Section A instead of on Form 8829 and
line 4. Estates and trusts include this amount on 6251, line 2a. Next, include the amount of your Section B.
Schedule D (Form 1041), line 4. standard deduction (before it is increased by
• Combine your long-term gains with your any net qualified disaster loss) in the total on Property Used in a Passive Activity
long-term losses and include the net long-term line 3. This is the amount you listed on the
gain or (loss) on Schedule D (Form 1040), dotted line next to Schedule A (Form 1040), A gain or loss from a casualty or theft of
line 11. Estates and trusts include this amount line 16 or Schedule A (Form 1040-NR), line 7. property used in a passive activity isn't taken
on Schedule D (Form 1041), line 11.
If you filed Schedule A to itemize your into account in determining the loss from a
The holding period for long-term gains and deductions, then don’t make this adjustment. passive activity unless losses similar in cause
losses is more than 1 year. For short-term gains and severity recur regularly in the activity. See
and losses, it is 1 year or less. To figure the Form 8582, Passive Activity Loss Limitations,
holding period, begin counting on the day after Line 17 and its instructions for details.
you received the property and include the day
the casualty or theft occurred. Estates and trusts figure AGI in the same way
Generally, if you inherit property, you are as individuals, except that the costs of Losses From Ponzi-Type
considered to have held the property for longer administration are allowed in figuring AGI. Investment Schemes
than 1 year, regardless of how long you actually
held it. If you inherited property from someone Section B—Business and
The IRS has issued the following guidance to
who died in 2010 and the executor made the Income-Producing Property assist taxpayers who are victims of losses from
election to file Form 8939, refer to the Ponzi-type investment schemes.
information provided by the executor or see You can no longer claim any
• Revenue Ruling 2009-9, 2009-14 I.R.B. 735
Pub. 4895, available at IRS.gov/Pub/IRS-Prior/ ! miscellaneous itemized deductions. As (available at IRS.gov/irb/
p4895--2011.pdf, to determine your holding CAUTION a result, business casualty and theft
period. losses of property used in performing services 2009-14_IRB#RR-2009-9).
as an employee cannot be deducted or applied • Revenue Procedure 2009-20, 2009-14 I.R.B.
Net loss. If line 13 is less than line 14 and you in the netting process to offset gains. 749 (available at IRS.gov/irb/
have qualified disaster losses subject to the 2009-14_IRB#RP-2009-20).
$500 reduction on line 11 on any Form(s) 4684: The rules for electing large partnerships • Revenue Procedure 2011-58, 2011-50 I.R.B.
849 (available at IRS.gov/irb/
• Subtract line 13 from line 14. Enter the ! have been repealed and are not 2011-50_IRB#RP-2011-58).
smaller of this difference or the amount on CAUTION applicable.
line 12 of the Form 4684 listing those qualified
disaster losses. The amount is your net Use a separate column of Part I, lines 20 If you qualify to use Revenue Procedure
qualified disaster loss. If you are itemizing your through 27, to show each item lost or damaged 2009-20, as modified by Revenue Procedure
deductions, enter the amount on line 16 of from a single casualty or theft described on 2011-58, and choose to follow the procedures
Schedule A (Form 1040), or line 7 of line 19. If more than four items were lost or in the guidance, first fill out Section C to
Schedule A (Form 1040-NR), and “Net damaged, use additional sheets following the determine the amount to enter on Section B,
Qualified Disaster Loss.” If you are claiming the format of Part I, lines 19 through 27. line 28. Skip lines 19 through 27. Section C of
Form 4684 replaces Appendix A in Revenue
increased standard deduction, enter the Use a separate Form 4684, Section B, Part Procedure 2009-20. You don't need to
amount on line 16 of Schedule A (Form 1040), I, for each casualty or theft involving property complete Appendix A.
or line 7 of Schedule A (Form 1040-NR), and used in a trade or business or for
“Net Qualified Disaster Loss.” Do not also income-producing purposes. Use one For more information, see the instructions
include this amount on line 15 of Schedule A Section B, Part II, to combine all Sections B, for Section C, later, and the above revenue
(Form 1040), or line 6 of Schedule A (Form Part I. ruling and revenue procedures.
1040-NR), if you are not itemizing your
deductions. For details on the treatment of casualties or
Complete the rest of Schedule A either by: thefts to business or income-producing If you choose not to use the procedures in
• Itemizing other deductions as usual; or property, including rules on the loss of inventory Revenue Procedure 2009-20, you may claim
• Including the amount of your standard through casualty or theft, see Figuring a Loss in your theft loss by filling out Section B, lines 19
deduction on the dotted line next to Schedule A Pub. 547. through 39, as appropriate.
(Form 1040), line 16, or Schedule A (Form
1040-NR), line 7. Also, enter “Standard Home Used for Business or Section 179 Property of a
Deduction Claimed With Qualified Disaster Partnership or S Corporation
Loss” on that dotted line next to this amount. Rented Out
See the instructions for Schedule A (Form Partnerships and S corporations that have a
1040) or the Instructions for Form 1040-NR for If you had a casualty or theft loss involving a
more information. If you are also filing Form home you used for business or rented out, your casualty or theft involving property for which the
6251, see Taxpayers who also file the 2022 deductible loss may be limited. First, complete section 179 expense deduction was previously
Form 6251, Alternative Minimum Tax for Form 4684, Section B, lines 19 through 26. If claimed and passed through to the partners or
Individuals next. the loss involved a home used for a business shareholders must not use Form 4684 to report
for which you are filing Schedule C (Form the transaction. Instead, see the Instructions for
Don’t complete the rest of this section if all 1040), Profit or Loss From Business, figure your Form 4797 for details on how to report it.
your personal casualty and theft losses are deductible casualty or theft loss on Form 8829, Partners and S corporation shareholders who
qualified disaster losses subject to the $500 Expenses for Business Use of Your Home (if receive a Schedule K-1 reporting such a
reduction. you are using Form 8829). Enter on Form 4684, transaction should see the Instructions for Form
If line 13 is less than line 14 and you have no line 27, the deductible loss from Form 8829, 4797 for details on how to figure the amount to
qualified disaster losses subject to the $500 line 35, and “See Form 8829” above line 27. For enter on Form 4684, line 20.
reduction on line 11 of your Form 4684, enter a home you rented out or used for a business
zero and go to line 16 and complete the rest of for which you aren't filing Schedule C (Form
the section. 1040), see section 280A(c)(5) to figure your
deductible loss. Attach a statement showing
your computation of the deductible loss, enter

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Line 19 measure the loss separately for the building and Line 30
for the trees.
If you are claiming a loss from a fraudulent Include in the total any amounts from the
investment arrangement and you are not filling Line 28 additional sheet you attached because you had
out Section C, you must enter the name, more than two casualties or thefts on line 29.
taxpayer identification number (if known), and If the amount on line 28 includes losses on
address (if known) of the individual or entity that property held 1 year or less, and losses on Line 31
conducted the fraudulent arrangement. property held for more than 1 year, you must
Complete the rest of Section B, Part I. allocate the amount between lines 29 and 34
according to how long you held each property. If Form 4797, Sales of Business Property, isn't
Line 20 Enter on line 29 all gains and losses on property otherwise required, enter the amount from this
held 1 year or less. Enter on line 34 all gains line on your Schedule 1 (Form 1040), line 4.
Cost or adjusted basis usually means original and losses on property held more than 1 year, Next to that line, enter “Form 4684.”
cost plus improvements, minus depreciation except as provided in the instructions for
allowed or allowable (including any section 179 line 33. Line 32
expense deduction), amortization, depletion,
etc. Special rules apply to property received as If you are claiming a theft loss from a
a gift or inheritance. See Basis Other Than Cost Ponzi-type investment scheme and are Estates and trusts, enter the amount from
in Pub. 551 for details. If you inherited the following the procedures in Revenue Procedure line 32 on the “Other deductions” line of your
property from someone who died in 2010 and 2009-20, 2009-14 I.R.B. 749, enter on line 28 tax return. Partnerships, enter on Form 1065,
the executor of the decedent's estate made the the amount from Section C, line 51. Don't Schedule K, line 13d. S corporations, enter on
election to file Form 8939, refer to the complete Section B, lines 19 through 27, of Form 1120-S, Schedule K, line 12d. Next to that
information provided by the executor or see Form 4684 for that loss. You must fill out line, enter “Form 4684.”
Pub. 4895, available at IRS.gov/Pub/IRS-Prior/ Section B, Part II.
p4895--2011.pdf. Line 33
Part II, Column (a)
If you dispose of a portion of a Modified If you had a casualty or theft gain from certain
Accelerated Cost Recovery System (MACRS) On lines 29 and 34, use a separate line to trade, business, or income-producing property
asset as a result of a casualty event, enter the identify each casualty or theft. If you have more held more than 1 year, you may have to
adjusted basis of the disposed portion of the than two casualties or thefts, attach an recapture part or all of the gain as ordinary
asset. MACRS assets include buildings (and additional sheet following the format of lines 29 income. See the instructions for Form 4797,
their structural components) and other tangible and 34. Part III, for more information on the types of
depreciable property placed in service after property subject to recapture. If recapture
1986 that is used in a trade or business or for Example. Ishmael is claiming two casualty applies, complete Form 4797, Part III, and this
the production of income. The adjusted basis of losses for his business property. One loss is line, instead of Form 4684, line 34.
the disposed portion of the asset is the adjusted due to a fire in July and the other loss is due to
depreciable basis of that disposed portion at a hurricane in October. He fills out one
the time of its disposition, as determined under Section B, Part I, for the fire and another Line 35
the applicable convention. You must reduce the separate Section B, Part I, for the hurricane. He
basis and the depreciation reserve of the held the property for 1 year or less. He fills out Include in the total any amounts from the
MACRS asset by the basis and depreciation only one Section B, Part II, to summarize the additional sheet you attached because you had
reserve attributable to the disposed portion as two losses he is claiming. On line 29, he enters more than two casualties or thefts.
of the first day of the tax year, before you “Fire” on the first line and “Hurricane” on the
compute the depreciation deduction for the second line.
Line 38a
current year. To figure the depreciation If you are claiming a theft loss from a
deductions for the remaining MACRS asset and TIP Ponzi-type investment scheme, enter
the disposed portion, see the instructions for the name of the individual or entity that Taxpayers, other than partnerships and S
Form 4562, line 19, column (g). For more conducted the fraudulent arrangement. corporations, if Form 4797 isn't otherwise
information, see Regulations section 1.168(i)-8. required, enter the amount from this line on the
For partial dispositions from casualties to appropriate line for the form you are filing.
MACRS assets accounted for in a General Part II, Column (b)(i) Form 1040, 1040-SR, or 1040-NR filers.
Asset Account, see Regulations section Enter this amount on your Schedule 1 (Form
1.168(i)-1. Enter the part of line 28 from trade, business, 1040), line 4. Next to that line, enter “4684.”
rental, or royalty property.
Form 1120, 1120-F, and 1120-POL filers.
Line 21 See the Instructions for Schedule D (Form
Part II, Column (b)(ii) 1120) for where to report this amount.
See the instructions for line 3, earlier.
Enter the part of line 28 from income-producing Section C—Theft Loss
Line 22 property. Income-producing property is property Deduction for Ponzi-Type
held for investment, such as stocks, notes,
See the instructions for line 4, earlier. bonds, gold, silver, vacant lots, and works of Investment Scheme Using the
art. Procedures in Revenue
Lines 23 and 24 Procedure 2009-20
Part II, Column (c) Fill out Section C if you claim a theft loss
See the instructions for lines 5 and 6 for details deduction for a Ponzi-type investment scheme
on determining FMV. On line 29, enter the part of line 22 that is from and you meet both of the following conditions.
property held for 1 year or less. • You qualify to use Revenue Procedure
Loss on each item figured separately. 2009-20, as modified by Revenue Procedure
Unlike a casualty loss to personal-use real On line 34, enter the part of line 22 that is 2011-58.
estate, in which all improvements are from property held for more than 1 year. • You choose to follow the procedures in the
considered one item, a casualty loss to guidance.
business or income-producing property must be
figured separately for each item. For example, if If you meet both conditions, fill out Section C
casualty damage occurs to both a building and in lieu of Appendix A in Revenue Procedure
to trees on the same piece of real estate, 2009-20.

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For more information about claiming a theft Procedure 2009-20 (as modified by Revenue the spaces provided. You are agreeing to these
loss deduction from a Ponzi-type investment Procedure 2011-58) is filed, or the death of the statements and declarations when you sign
scheme, see the following guidance. lead figure occurs, whichever is later. your tax return. The information you enter in this
• Revenue Ruling 2009-9, 2009-14 I.R.B. 735 part will be used to verify the fraudulent
(available at IRS.gov/irb/ investment arrangement.
2009-14_IRB#RR-2009-9). Line 44
• Revenue Procedure 2009-20, 2009-14 I.R.B. Section D—Election To Deduct
749 (available at IRS.gov/irb/ Enter the total amount of cash or property that Federally Declared Disaster
2009-14_IRB#RP-2009-20). you withdrew from the investment arrangement
• Revenue Procedure 2011-58, 2011-50 I.R.B. in all years (whether designated as income or Loss in Preceding Tax Year
849 (available at IRS.gov/irb/ principal). Read the discussion under Disaster Losses,
2011-50_IRB#RP-2011-58). earlier. Then fill out Section D if you want to
Don't fill out Section C if you don't Line 45 elect to deduct a disaster loss on your tax return
for the preceding year. You may also fill out
! qualify to use the procedures in This is the amount of your investment that is Section D if you want to revoke a previous
CAUTION Revenue Procedure 2009-20, as
modified by Revenue Procedure 2011-58, or eligible for a deduction before any actual or election to deduct a disaster loss in the tax year
you don't choose to follow them. Instead, go to potential recoveries are taken into account. immediately preceding the disaster year.
the instructions for Section B.
Line 46 Part I—Election Statement
Line 40 Potential third-party recovery. This is the Fill out Part I if you want to make an election to
amount of all actual or potential claims for deduct a loss attributable to a federally
Enter the initial amount of cash or basis of recovery, as of the last day of the discovery declared disaster and that occurred in a
property that you invested in the investment year (defined earlier), that are not from federally declared disaster area in the tax year
arrangement. Don't include any of the following potential insurance or Securities Investor immediately preceding the tax year the loss
on this line, line 41, or line 42. Protection Corporation (SIPC) recovery, or a was sustained. By making this election, you
• Amounts borrowed from the responsible potential direct recovery. agree not to deduct the loss for the disaster
group and invested in the specified fraudulent year.
arrangement, to the extent the borrowed Potential insurance/SIPC recovery. This is
amounts weren't repaid at the time the theft was the total of all actual or potential claims for Attach Section D to your original return or
discovered. reimbursement that, as of the last day of the amended return for the tax year immediately
• Amounts such as fees that were paid to the discovery year, are attributable to: preceding the tax year the loss was sustained
responsible group and deducted for federal • Insurance policies in your name that protect to claim the disaster loss deduction.
income tax purposes. you from this type of loss;
• Amounts reported to you (the qualified • Contractual arrangements, other than You must make this election on or before
investor) as taxable income that weren't insurance, that guaranteed or otherwise the date that is 6 months after the regular due
included in gross income on the investor's protected against this type of loss; or date for filing your original return (without
federal income tax returns. • Amounts payable from SIPC, as advances extensions) for the disaster year.
• Cash or property that you (the qualified for customer claims under the Securities
investor) invested in a fund or other entity Investor Protection Act of 1970, or by a similar
(separate from you (the qualified investor) for entity under a similar provision. Part II—Revocation of Prior
federal income tax purposes) that invested in a Potential direct recovery. This is the amount Election
specified fraudulent arrangement. of all actual or potential claims for recovery, as
of the last day of the discovery year (defined Fill out Part II if you want to revoke a prior
For definitions of responsible group, earlier), against the responsible individual or election to deduct a loss attributable to a
specified fraudulent arrangement, and qualified group. federally declared disaster and that occurred in
investor, see Section 4 of Revenue Procedure a federally declared disaster area in the tax
2009-20. year immediately preceding the tax year the
Line 48 loss was sustained.
Line 41 Enter the amounts you actually received as a Attach Section D to your amended return for
reimbursement or recovery from any source. the tax year immediately preceding the tax year
Enter the amounts of cash or the basis of Don't include amounts that are potential direct the loss was sustained to revoke the previous
property that you invested after you made the recoveries (defined earlier) or potential disaster loss deduction. You must file this
initial investment (including amounts third-party recoveries (defined earlier). amended return for the preceding year on or
reinvested). before the date you file the original return or
Line 49 amended return for the disaster year on which
Line 42 you claim the disaster loss.
Enter the amount of potential insurance/SIPC
Enter the total amounts of net income (for recovery (defined earlier). You can revoke the prior election on or
example, interest and dividends minus before the date that is 90 days after the due
expenses) from the specified fraudulent date for making the election.
arrangement that, consistent with information Line 51
received from that arrangement, you included in Paperwork Reduction Act Notice. We ask
income for federal tax purposes for all tax years Enter the amount from line 51 on line 28 of for the information on this form to carry out the
before the discovery year, including tax years Section B. Don't complete lines 19 through 27 Internal Revenue laws of the United States. You
for which a refund is barred by the statute of for this loss. Then complete Section B, Part II. are required to give us the information. We
need it to ensure that you are complying with
limitations. If you had other casualties or thefts, fill these laws and to allow us to figure and collect
Discovery year. The discovery year is the tax TIP out a separate Section B, Part I, for the right amount of tax.
year when one of the following occurs. them.
• The indictment, information, or complaint You aren't required to provide the
described in section 4.02(1) or (2) of Revenue information requested on a form that is subject
Procedure 2009-20 (as modified by Revenue Part II to the Paperwork Reduction Act unless the form
Procedure 2011-58) is filed. displays a valid OMB control number. Books or
• The complaint or similar document Read the statements and declarations in this records relating to a form or its instructions
described in section 4.02(3) of Revenue part carefully. Enter the required information in must be retained as long as their contents may

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become material in the administration of any      return. The estimated burden for all other   If you have comments concerning the 
Internal Revenue law. Generally, tax returns      taxpayers who file this form is shown below. accuracy of these time estimates or 
and return information are confidential, as                                                    suggestions for making this form simpler, we 
required by section 6103.                         Recordkeeping. . . . . .      2 hr., 37 min. would be happy to hear from you. See the 
                                                                                               instructions for the tax return with which this 
The time needed to complete and file this         Learning about the                           form is filed.
form will vary depending on individual            law or the form. . . . . .    24 min.
circumstances. The estimated burden for 
individual taxpayers filing this form is approved Preparing the form. . .       1 hr., 58 min.
under OMB control number 1545-0074 and is 
included in the estimates shown in the            Copying, assembling, 
instructions for their individual income tax      and sending the form 
                                                  to the IRS. . . . . . . . . . 1 hr., 3 min.

Instructions for Form 4684 (2022)                                       -9-

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