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2024 Schedule M1CAT Instructions
Purpose of Form
Use Schedule M1CAT, Casualty and Theft, to report gains and losses from casualties and thefts. Attach Schedule M1CAT along with Schedule
M1SA, Minnesota Itemized Deductions, to your Minnesota income tax return.
If you completed federal Form 4684 due to a federally declared disaster area, use the information from your federal Form 4684 to complete
Schedule M1CAT.
Do not complete Schedule M1CAT if you completed federal Form 4684 to report a net gain from a casualty or theft on your federal income tax
return.
Which losses are deductible?
You can deduct losses of property from fire, storm, shipwreck, other casualty, or theft (for example, larceny and robbery).
For more examples, see IRS Publication 547.
If your property is covered by insurance, you may only deduct the part of your loss your insurance policy would not reimburse if a claim was
filed timely.
Related expenses. You may not deduct expenses related to a casualty or theft, such as expenses for treatment of personal injuries or for a rental
car.
Costs for protection against future casualties are not deductible but should be capitalized as permanent improvements. An example would be the
cost of a levee to stop flooding.
Which losses are not deductible?
Nondeductible losses may include:
• Money or property misplaced or lost
• Breakage of china, glassware, furniture, and similar items under normal conditions
• Progressive damage to property (buildings, clothes, trees, etc.) caused by mold, termites, moths, other insects, or disease
• A decline in market value of stock, caused by disclosure of accounting fraud or other illegal misconduct by the officers or directors of the
corporation issuing the stock, acquired on the open market for investment
When should I deduct a loss?
Deduct the part of your casualty or theft loss that is not reimbursable in the tax year the casualty occurred or the theft was discovered.
If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become
reasonably certain it will not be reimbursed.
If you are reimbursed for a loss you deducted in an earlier year, include the reimbursement in your taxable income in the year you received it,
but only to the extent the deduction reduced your taxable income in an earlier year.
Personal Use Property
Use a separate column for lines 1 through 9 to show each item lost or damaged from a single casualty or theft event. If more than four items
were lost or damaged, complete lines 1 through 9 of additional Schedules M1CAT for those items.
Complete a separate Schedule M1CAT through line 12 for each casualty or theft event involving property not used in a trade or business or for
income-producing purposes. For example, complete a separate Schedule M1CAT through line 12 for property lost or damaged due to a fire, and
another Schedule M1CAT for property lost or damaged due to a storm.
Do not include any loss previously deducted on an estate tax return.
If you are liable for casualty or theft losses to property leased from someone else, see Leased property under Figuring a Loss in IRS Publica-
tion 547.
Line Instructions
Line 1
Describe the type of property (for example, furniture, jewelry, car, etc.).
Line 2
Cost or other basis usually means the original cost plus improvements. Subtract any postponed gain from the sale of a previous main home.
Special rules apply to property received as a gift or inheritance. For details, see Basis Other Than Cost in IRS Publication 551.
Line 3
Enter the amount of insurance or other reimbursement you received or expect to receive for each property. Include your insurance coverage
whether or not you are filing a claim for reimbursement. For example, your car worth $2,000 is totally destroyed in a collision, and you are
insured with a $500 deductible. You decide not to report the collision to your insurance company because you are concerned it will cancel your
policy. In this case, enter $1,500 on line 3.
If you expect to be reimbursed but have not yet received payment, you must still enter the expected reimbursement from the loss. If, in a later tax
year, you become reasonably certain that you will not be reimbursed for all or part of the loss, you can deduct for that year the amount of the loss
that is not reimbursed.
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