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IRS.gov Website
Publication 17
taxmap/pub17/p17-141.htm#en_us_publink1000173654

How To Report
Gains and Losses(p176)

rule
Use Form 4684 to report a gain or a deductible loss from a casualty or theft. If you have more than one casualty or theft, use a separate Form 4684 to determine your gain or loss for each event. Combine the gains and losses on one Form 4684. Follow the form instructions as to which lines to fill out. In addition, you must use the appropriate schedule to report a gain or loss. The schedule you use depends on whether you have a gain or loss.
If you have a:Report it on:
GainSchedule D (Form 1040)
LossSchedule A (Form 1040)
taxmap/pub17/p17-141.htm#en_us_publink1000173657

Adjustments to basis.(p176)

rule
If you have a casualty or theft loss, you must decrease your basis in the property by any insurance or other reimbursement you receive, and by any deductible loss. Amounts you spend to restore your property after a casualty increase your adjusted basis. See Adjusted Basis in chapter 13 for more information.
taxmap/pub17/p17-141.htm#en_us_publink1000173659

Net operating loss (NOL).(p176)

rule
If your casualty or theft loss deduction causes your deductions for the year to be more than your income for the year, you may have an NOL. You can use an NOL to lower your tax in an earlier year, allowing you to get a refund for tax you have already paid. Or, you can use it to lower your tax in a later year. You do not have to be in business to have an NOL from a casualty or theft loss. For more information, see Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts.