||2008 Tax Year
Publication 547 - Introductory Material
Kansas and Midwestern disaster areas. The following paragraphs explain the special rules that apply to casualties and thefts of taxpayers in both the Kansas disaster area (defined below) who were affected by storms and tornadoes that began on May 4, 2007, and Midwestern disaster areas (defined below). In addition, you may be entitled to other tax benefits not covered in this publication. For
more information, see Publication 4492-A, Information for Taxpayers Affected by the May 4, 2007, Kansas Storms and Tornadoes
or Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas.Losses of personal use property
that arose in these disaster areas are not subject to the $100 or 10% of adjusted gross income limitations. Qualifying losses
include losses from casualties and thefts that arose in the disaster area and that were attributable to the storms and tornadoes.
If you live in the Kansas disaster area and deducted your loss in 2007 or elected to deduct the loss in 2006, do not use the
2008 Form 4684 to claim that loss. Instead, see Publication 4492-A for special instructions on how to complete your tax forms.
If you live in a Midwestern disaster area and you elect to deduct the loss in 2007, see Publication 4492-B for special instructions
on how to complete your tax forms.The replacement period for property in these disaster areas that was damaged, destroyed
or stolen has been extended from 2 to 5 years. For more information, see
later.The Kansas disaster area covers the Kansas counties of Barton, Clay, Cloud, Comanche, Dickinson, Edwards, Ellsworth, Kiowa, Leavenworth, Lyon, McPherson,
Osage, Osborne, Ottawa, Phillips, Pottawatomie, Pratt, Reno, Rice, Riley, Saline, Shawnee, Smith, and Stafford.For purposes
of the special rules discussed above, a Midwestern disaster area is an area for which a major disaster was declared by the President during the period beginning on May 20, 2008, and ending
on July 31, 2008, in the state of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, or Wisconsin
as a result of severe storms, tornadoes, or flooding that occurred on the applicable disaster date. For a list of counties
in Midwestern disaster areas, see
Table 4. Midwestern Disaster Areas
later.The term “applicable disaster date” as used in this publication, refers to the date on which the severe storms, tornadoes, or flooding occurred in the Midwestern
Federally declared disasters. New rules apply to losses of personal use property attributable to federally declared disasters declared in tax years beginning
after 2007 and that occurred before 2010. For more information, see
Disaster Area Losses
Special rules for individuals impacted by Hurricanes Katrina, Rita, and Wilma. If you claimed a casualty or theft loss deduction and in a later year you received more reimbursement than you expected, you
do not recompute the tax for the year in which you claimed the deduction. Instead, you must include the reimbursement in your
income for the year in which it was received, but only to the extent the original deduction reduced your tax for the earlier
year. However, an exception applies if you claimed a casualty or theft loss deduction for damage to or destruction of your main home caused
by Hurricane Katrina, Rita, or Wilma, and in a later year you received a hurricane relief grant. Under this exception, you
can choose to file an amended income tax return (Form 1040X) for the tax year in which you claimed the deduction and reduce
(but not below zero) the amount of the deduction by the amount of the grant.For more information, see
Reimbursement Received After Deducting Loss
Personal casualty and theft loss limit. Generally, a personal casualty or theft loss must exceed $500 to be allowed for 2009. This is in addition to the 10% of AGI
limit that generally applies to the net loss.
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of
missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help
bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
This publication explains the tax treatment of casualties, thefts, and losses on deposits. A casualty occurs when your property
is damaged as a result of a disaster such as a storm, fire, car accident, or similar event. A theft occurs when someone steals
your property. A loss on deposits occurs when your financial institution becomes insolvent or bankrupt.
This publication discusses the following topics.
Definitions of a casualty, theft, and loss on deposits.
How to figure the amount of your gain or loss.
How to treat insurance and other reimbursements you receive.
The deduction limits.
When and how to report a casualty or theft.
The special rules for disaster area losses.
Forms to file.
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
Schedule A (Form 1040).
Schedule D (Form 1040).
For details on which form to use, see
How To Report Gains and Losses,
For information on condemnations of property, see Involuntary Conversions
in chapter 1 of Publication 544.
Workbooks for casualties and thefts.
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 and its contents, and your motor vehicles.
Publication 584-B is available to help you make a list of your stolen or damaged business or income-producing property
and figure your loss.
Comments and suggestions.
We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications Branch
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number,
including the area code, in your correspondence.
You can email us at *email@example.com
. (The asterisk must be included in the address.) Please put “Publications Comment
” on the subject line. Although we cannot respond individually to each email, we do appreciate your feedback and will consider
your comments as we revise our tax products.
Ordering forms and publications.
to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days
after your request is received.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613
If you have a tax question, check the information available on www.irs.gov
or call 1-800-829-1040. We cannot answer tax questions sent to either of the above addresses.
Useful Items - You may want to see:
Selling Your Home
Taxable and Nontaxable Income
Investment Income and Expenses
Basis of Assets
Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property)
Business Casualty, Disaster, and
Theft Loss Workbook
Form (and Instructions)
Schedule A (Form 1040)
Schedule D (Form 1040)
Capital Gains and Losses
Casualties and Thefts
Sales of Business Property
How To Get Tax Help
near the end of this publication for information about getting publications and forms.
Previous | Index | Next
You can search for information in the entire Tax Prep Help section, or in the entire site. For a more focused search, put your search word(s) in quotes.
Publication Index | Tax Prep Help Main | Home