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Publication 17
taxmap/pub17/p17-134.htm#en_us_publink1000173520

Chapter 25
Nonbusiness Casualty and Theft Losses(p170)

For Use in Tax Year 2013

What's New(p170)


taxmap/pub17/p17-134.htm#en_us_publink1000196714
New Section C of Form 4684 for Ponzi-type investment schemes.(p170)
Section C of Form 4684 is new for 2013. You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. You do not need to complete Appendix A. For details, see Losses from Ponzi-type investment schemes, in this chapter.
taxmap/pub17/p17-134.htm#en_us_publink1000278732
This chapter explains the tax treatment of personal (not business or investment related) casualty losses, theft losses, and losses on deposits.
The chapter also explains the following
topics.
taxmap/pub17/p17-134.htm#en_us_publink1000173527

Forms to file.(p170)

For Use in Tax Year 2013
rule
When you have a casualty or theft, you have to file Form 4684. You will also have to file one or more of the following forms.
taxmap/pub17/p17-134.htm#en_us_publink1000173528

Condemnations.(p170)

For Use in Tax Year 2013
rule
For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Disposition of Assets.
taxmap/pub17/p17-134.htm#en_us_publink1000173529

Workbook for casualties and thefts.(p170)

For Use in Tax Year 2013
rule
Publication 584 is available to help you make a list of your stolen or damaged personal-use property and figure your loss. It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles.
taxmap/pub17/p17-134.htm#en_us_publink1000173530

Business or investment-related losses.(p170)

For Use in Tax Year 2013
rule
For information on a casualty or theft loss of business or income-producing property, see Publication 547, Casualties, Disasters, and Thefts.

taxmap/pub17/p17-134.htm#TXMP311f662a

Useful items

You may want to see:


Publication
 544 Sales and Other Dispositions
of Assets

 547 Casualties, Disasters, and
Thefts

 584 Casualty, Disaster, and Theft
Loss Workbook (Personal-Use
Property)

Form (and Instructions)
 Schedule A (Form 1040): Itemized Deductions
 Schedule D (Form 1040): Capital Gains and Losses
 4684: Casualties and Thefts
taxmap/pub17/p17-134.htm#en_us_publink1000173531

Casualty(p170)

For Use in Tax Year 2013
rule
A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.
taxmap/pub17/p17-134.htm#en_us_publink1000173532

Deductible losses.(p170)

For Use in Tax Year 2013
rule
Deductible casualty losses can result from a number of different causes, including the following.
taxmap/pub17/p17-134.htm#en_us_publink1000173535

Nondeductible losses.(p170)

For Use in Tax Year 2013
rule
A casualty loss is not deductible if the damage or destruction is caused by the following.
taxmap/pub17/p17-134.htm#en_us_publink1000173536
Family pet.(p170)
Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed earlier under Casualty are met.
taxmap/pub17/p17-134.htm#en_us_publink1000173537

Example.(p170)

Your antique oriental rug was damaged by your new puppy before it was housebroken. Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss.
taxmap/pub17/p17-134.htm#en_us_publink1000173538
Progressive deterioration.(p170)
Loss of property due to progressive deterioration is not deductible as a casualty loss. This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. The following are examples of damage due to progressive deterioration.
taxmap/pub17/p17-134.htm#en_us_publink1000263070
Damage from corrosive drywall.(p170)
Under a special 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 Publication 547.