The above post answers the question of how to generate a statement with the return to support the IRS requirements for using a safe harbor method for determining the amount of the casualty loss. Unfortunately there were two problems in getting TurboTax to meet the safe harbor requirements. The statement is only one of them. The other problem is getting Form 4684 filled out correctly. Under the DeMinimis Safe Harbor Method (maybe other safe harbor methods as well), the IRS requires line 5 & 6 to be left blank. Line 7 is then completed with the amount of the loss computed under the safe harbor method. Unfortunately, TurboTax will only populate line 7 by subtracting line 6 from line 5. This is correct if the loss was computed using the general rules - but not correct using the safe harbor methods. Therefore, the only way to get a correct Form 4684 is to override lines 5, 6 & 7. Tax returns with overrides can not be e-filed so this return must be mailed in.
