Disaster claims on 4684

[DAB73]

Where do I show that "safe harbor" was used for my calculations on form 4684? This is required by IRS if you use that method.

[Anonymous_]

@Mike9241 

[Mike9241 · Accepted solution]

Safe harbor reporting requirements for Form 4684. If you use one of the safe harbor methods provided in Revenue Procedure 2018-08, you must attach a statement to Form 4684 stating that you used Revenue Procedure 2018-08 to determine the amount of your casualty loss. Include the specific safe harbor method used. If you use the cost indexes safe harbor method provided in Revenue Procedure 2018-09 to calculate hurricane-related losses, you must attach a statement to Form 4684 stating that you used Revenue Procedure 2018-09 to determine the amount of your casualty loss. Include the specific table number used. When completing Form 4684, do not enter an amount on line 5 or line 6 for each property. Instead, enter the decrease in the FMV determined in the relevant safe harbor method on line 7.

in other words, you will no longer be able to e-file if using either procedure. at the top of 4684 write the rev proc number using are using - ie filed pursuant to rev proc 2018-X. 

you should read the instructions for form 4684 

sectipn A of the form for personal property section B for business property.

[DAB73]

Thanks for your reply. I’m aware of the its rules about safe harbor. Will TurboTax offer a way to mention Proc 2018-08 on the worksheets and on the final 4684? This will be a common need after Ian and other official disasters. Thanks

[Anonymous_]

@DAB73 

If you read through the entire Rev. Proc., nowhere does it state that the safe harbor must be elected or mentioned on a return. 

[DAB73]

From 2022 IRS form 4684 instructions, p.5, line 5:

From line 5: safe harbor reporting requirements for Form 4684. If you use one of the safe harbor methods provided in Revenue Procedure 2018-08, you must attach a statement to Form 4684 stating that you used Revenue Procedure 2018-08 to determine the amount of your casualty loss. Include the specific safe harbor method used.

[Anonymous_ · Accepted solution]

@DAB73 

Understood and, in that event, you will likely have to use a (provided) blank form in TurboTax. I highly recommend that you use a desktop version of TurboTax if at all possible.

[DAB73]

How do I find a “blank form?”  TT doesn’t list one in Forms list and a search does not find one either. 
This must be a common need for people filing 4684 claims. Maybe TT can add this option?

Thanks for your help 

[Anonymous_]

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@DAB73 wrote:

How do I find a “blank form?” 

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It is in the Forms List (Forms Mode).

[Anonymous_]

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@DAB73 wrote:

This must be a common need for people filing 4684 claims. Maybe TT can add this option?

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If it were that common, it would most likely have been added already. Therefore, I would not count on the "statement" being added to the program.

[DAB73]

Found it, thanks!

Next issue: the form 4684 worksheets only allow entry of two items per sheet, but the actual IRS form 4684 has rows and columns for four items per sheet. I am reporting about 12 items, requiring six worksheets. Will the final submitted return fill all four columms on the 4684 forms? Otherwise it looks like an error.

I appreciate your help with this matter. I've been usinig TT for many years, but this is the first time I've had to report casualty losses, thanks to Hurricane Ian.

[DAB73]

Is the downloaded version different from the desktop version? I thought they were the same.

[TerukoL]

The CD and download versions of TurboTax are the same. It only means that is the method that you use to access the desktop product.

TurboTax CD/downloaded versions are installed on your computer. You can purchase the physical CD from a store or buy the download directly from TurboTax.  You just will not have the CD.  

The big difference between the two options is that you will be able to view all the tax forms included in your return when you use the CD/downloaded version versus the online version.  With TurboTax Online, you can only preview your Form 1040 before paying the TurboTax fees.  

Please click https://turbotax.intuit.com/personal-taxes/compare/online/ to see the different versions of TurboTax online and desktop.  @DAB73