Form 4684: Casualties and Thefts

Form 4684 is generally used to report certain casualty and theft losses involving personal-use, business, or income-producing property.

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Introduction

Form 4684, Casualties and Thefts, is a federal tax form generally used to report certain losses resulting from casualties or thefts. The form generally provides information used to calculate applicable losses involving personal-use property, business property, or income-producing property.

This guide provides general information about Form 4684, including who may use the form, the information commonly needed, and the basic process for completing it. The information is intended to provide a simple overview of Form 4684 and its general purpose.

What Is Form 4684?

Form 4684 is generally used to report certain casualty and theft losses and calculate applicable amounts for federal tax reporting. A casualty may generally involve damage, destruction, or loss of property resulting from an identifiable event, while a theft may involve the taking of property under applicable circumstances.

Form 4684 generally includes information about the property, date of the casualty or theft, adjusted basis, decrease in value, insurance or other reimbursements, and applicable loss calculations. The specific information required can depend on the type of property, nature of the event, insurance coverage, and other applicable circumstances.

Who Uses Form 4684?

Form 4684 is generally used by taxpayers who have applicable casualty or theft losses that must be reported for federal tax purposes. This may include individuals, businesses, and other taxpayers with qualifying personal-use, business, or income-producing property losses.

The reporting requirements can depend on the type of property, nature of the casualty or theft, insurance or reimbursement received, business or personal use, and other applicable circumstances. Not every property loss or damage event necessarily qualifies for reporting on Form 4684.

What Information Is Needed?

The information needed to complete Form 4684 generally comes from property records, purchase documents, insurance statements, repair records, appraisals, financial records, and other supporting documentation. Accurate records can help determine the applicable loss and any amounts that may affect the calculation.

Common information includes:

Description of damaged, destroyed, or stolen property
Date of casualty or theft
Date the property was acquired
Cost or other basis
Adjusted basis
Value of property before the event
Value of property after the event
Insurance reimbursements
Other reimbursements
Repair or replacement information when applicable
Business or income-producing use information
Supporting property and tax records

The specific information required may depend on the type of property, nature of the event, property use, insurance coverage, reimbursements, basis, and other applicable circumstances.

How to Fill Out/Complete Form 4684

Form 4684 is generally completed by identifying the property and casualty or theft, determining the property’s applicable basis and change in value, reporting insurance or other reimbursements, calculating the applicable loss, and reviewing the completed form before submitting it with the applicable tax return.

The basic process is to gather property and event records, identify the affected property, determine the applicable basis and value information, report insurance or other reimbursements, calculate the applicable loss, complete any required supporting information, and review Form 4684 before submitting it with the applicable tax return. Taxpayers should retain a copy of the completed form and supporting records.

Section 1

Identify the property affected by the casualty or theft and provide the applicable event information. This generally includes describing the property and identifying the date and nature of the casualty or theft.

The information should generally agree with property records, insurance documents, police reports when applicable, photographs, repair records, and other supporting documentation. Taxpayers should review the information carefully before continuing with the form.

Section 2

Enter the cost or other basis of the affected property and applicable adjustments. The basis generally provides information used to determine the potential loss associated with the property.

The basis should generally be supported by purchase records, improvement records, prior tax information, depreciation records, and other applicable documentation. Taxpayers should review the basis carefully before completing the loss calculation.

Section 3

Determine the applicable decrease in the property’s value when required. This generally involves considering the property’s value before and after the casualty or theft.

The value information should generally be supported by appropriate records, appraisals, estimates, photographs, repair information, or other applicable documentation. Taxpayers should retain records supporting the values used in the calculation.

Section 4

Enter insurance reimbursements and other applicable reimbursements received or expected to be received. These amounts may affect the amount of loss that can be reported.

The reimbursement information should generally agree with insurance statements, settlement documents, payment records, and other supporting documentation. Taxpayers should review the amounts carefully before completing the loss calculation.

Section 5

Calculate the applicable casualty or theft loss. The calculation generally considers the property’s basis, applicable decrease in value, insurance or other reimbursements, and other amounts required for the calculation.

The resulting amount should generally be reviewed against the taxpayer’s property, insurance, financial, and tax records. Supporting documentation should be retained for amounts reported on Form 4684.

Section 6

Complete applicable information for business or income-producing property when required. The reporting and calculation may differ depending on how the affected property was used.

The information should generally be supported by business records, asset records, depreciation schedules, accounting records, insurance documents, and other applicable records. Taxpayers should retain documentation supporting the reported loss.

Section 7

Complete any additional information or calculations required by Form 4684. This may include information related to reimbursements, property use, casualty events, thefts, business property, or other applicable circumstances.

Only information that applies to the taxpayer and loss should generally be included. Supporting property, insurance, financial, business, and tax records should be retained with the completed form.

Final Review

Review Form 4684 after completing all applicable sections. Check the property description, casualty or theft date, cost or other basis, adjusted basis, property values, insurance reimbursements, other reimbursements, and calculated loss.

A final review can help identify incorrect or incomplete information before Form 4684 is submitted with the applicable tax return. Taxpayers should retain a copy of Form 4684, purchase records, property records, insurance documents, photographs, repair records, appraisal information, financial records, and supporting tax records with their files.

Common Mistakes

Common Form 4684 mistakes may include entering incorrect property information, using an incorrect basis, reporting inaccurate property values, or failing to properly account for insurance or other reimbursements. Errors involving personal-use, business, or income-producing property can also affect the reported loss.

Other mistakes may include reporting a loss that does not qualify, failing to retain supporting documentation, overlooking applicable reimbursements, using unsupported property values, entering information in the wrong section, or submitting the form without reviewing the calculations. Comparing Form 4684 with property, insurance, financial, business, and tax records before filing can help identify potential errors.

Related IRS Forms

Taxpayers may encounter additional federal tax forms when reporting casualty and theft losses, business property, depreciation, capital assets, and other applicable tax information. Different forms are generally used for different types of federal tax reporting.

Common related forms include:

Form 1040 for individual federal income tax reporting
Form 4797 for certain sales or exchanges of business property
Form 8949 for certain sales and other dispositions of capital assets
Schedule D for certain capital gains and losses
Form 4562 for depreciation and amortization
Form 8829 for certain business-use-of-home expenses
Form 6251 for certain alternative minimum tax calculations
Form 1065 for certain partnership income tax reporting
Form 1120 for certain corporate income tax reporting
Form 1120-S for certain S corporation tax reporting

The appropriate form depends on the taxpayer’s property, type of loss, property use, business activity, entity type, insurance coverage, and other applicable circumstances.

Where to File or Submit

Form 4684 is generally submitted with the applicable federal tax return when required. The form is generally used to report qualifying casualty and theft losses and calculate applicable loss amounts.

Taxpayers should review the applicable filing requirements before submitting Form 4684. A copy of the completed form, property records, insurance documents, repair records, valuation information, financial records, and other supporting tax records should generally be retained for the taxpayer’s files.

Current IRS Form & Instructions

Taxpayers should use the applicable version of Form 4684 and its instructions when reporting qualifying casualty and theft losses. Federal tax forms and requirements can change, so the version used should correspond with the applicable tax period and filing circumstances.

Before submitting Form 4684, taxpayers should review the form and instructions and confirm that the information entered agrees with their property, insurance, financial, business, and tax records. This can help identify potential errors before the form is submitted.

Important Information / Disclaimer

This Form 4684 guide is provided for general informational purposes only and is intended to provide a basic overview of Form 4684 and common information associated with reporting casualty and theft losses. This information is not tax, legal, accounting, or financial advice, and Form 4684 requirements can vary depending on the taxpayer, property, nature of the event, insurance coverage, reimbursements, and other applicable circumstances.

Taxpayers are responsible for determining their applicable tax, loss, deduction, filing, recordkeeping, and reporting requirements. The information on this page may not cover every situation, exception, or special rule that may apply. When appropriate, taxpayers should consider seeking assistance from a qualified tax professional or other qualified advisor regarding their specific casualty or theft loss, property records, insurance reimbursement, loss calculation, or Form 4684 filing requirements.