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For the Form 4684 what entry am I checking for? Do I enter in the total casualty

 
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MarilynG1
Expert Alumni

For the Form 4684 what entry am I checking for? Do I enter in the total casualty

Type 'casualty loss' in the Search area, then click on 'Jump to casualty loss'.

 

Click this link for info on .How to Report a Casualty Loss.

 

If you got an insurance reimbursement, you can subtract this amount from the FMV of the property 'before' the casualty and use that number as the FMV 'after' the event.

 

For example, you had a barn valued at 40K that was wrecked in a tornado.  You got 10K insurance reimbursement.  You can use the 'before' value of 40K and the 'after' value of 30K. 

 

If you spent additionally out-of-pocket for repairs, add that amount to the insurance reimbursement amount and subtract from FMV. 

 

In the example above, if you spent an additional 5K, use 25K as the value 'after' the event.  You needed the 10K from insurance and the 5K you spent yourself to restore it. 

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