Form 4684 and Damaged house for hurricane Ian

[RobertB4444]

The form is available in TurboTax but if you just need a copy you can get it here.

@SHIRLEY 75 

[IJF1]

I use the Step-by-Step questions, not the forms

So do I choose Federally declared major disaster loss or Federally declared disaster (not "qualified")

[SilverknightFL]

Federally declared disaster (not "qualified"). 

[MonikaK1]

If you are looking for the latest IRS information on Tax Relief in Disaster Situations, please see this IRS webpage for details.

See also this TurboTax Blog article. TurboTax prompts users in different stages of return preparation for information pertaining to disaster relief where it may apply.

@IJF1 

[maichele]

A quick question to add to this thread.  I have already settled with my insurance company on personal property destroyed in Ian.  My coverage for personal property was only a 3rd of what was lost and they have paid out.  Do I now have to list every single item that was destroyed but not covered under my insurance on 4684?  It would be one very long list unless I can import a spreadsheet.  Do they need to see every item?  forks and spoons?  (I'm kidding, kind of)

Thanks

[AmyC]

No,  I list big stuff. Landscaping, shed, personal items, and so on. Based on your comment, you may even be able to use restore former value- for the house damage - and use your repair expenses.

Insurance reimbursement will be subtracted from the total of the losses.

Federal casualty losses, disaster losses and qualified disaster losses are three categories of casualty losses that refer to federally declared disasters. The requirements for each loss vary. For more information, see Publication 547 or refer to the Instructions for Form 4684.

You can list the disaster in the year it happened or go back and amend the prior year. Choose the year with the most tax benefit.

Reference: Topic No. 515 Casualty, Disaster, and Theft Losses - Internal Revenue Service 

@maichele

[SilverknightFL]

A quick question for maichele: Not knowing the amounts (also remember that your insurance deductible should be included in form 4684), you might want to consider suing your insurance company. I'm in that process now. For a lot of people, just having a lawyer send the required intent to sue notification though the state is enough to get some action. Almost anylawyer will take the case as the one-way attorney fee change does NOT impact any Ian claims, as they are based on policies written before SB-2A was signed. So if you have a case, you won't pay for your lawyer. I'm in the process now.

And if they do come back with some more money, you just claim it as 'other income' in the year you receive it.

On to another issue maichele brought up... why do you think you need to list everything? In section A, type of property, you only need to enter something like "single family home" or "detached garage" or "dishwasher" "personal possessions (clothes, cookware)." If the IRS wants a detailed list, just have a list or photos stored online. 

The instructions for the form say exactly what you can't include in your loss:

Losses You Can't Deduct
• Money or property misplaced or lost.
• Breakage of china, glassware, furniture, and similar items under normal conditions. (Ian was not "normal")
• Progressive damage to property (buildings, clothes, trees, etc.) caused by termites, moths, other insects, or disease.
• A decline in market value of stock, caused by disclosure of accounting or other illegal misconduct by the officers or directors of the corporation that issues the stock, that was acquired on the open market for investment.
You may be able to deduct it as a capital loss on Schedule D (Form 1040) if the stock is sold or exchanged or becomes completely worthless. See chapter 4 of Pub. 550, Investment Income and Expenses.

[Justin202203]

Hi,

After I prepared the Federal tax return and I found CA tax return automatically linked and used year 2021 4684 form insteading of Year 2022 4684 form, however it's Year 2022 4684 form under my federal tax return.

Could you please let me know how can I update it?

Thank you very much.

Have a great day.

[AmyC]

You will need to contact support. You need all forms to be 2022.

[Justin202203]

@AmyC 

Thank you Amy.

I called support team as you suggested, and talked with them for one and half hour, shared my pc screen to them to show the error, which for federal tax return turbotax software used the correct 4684 form which is year 2022, however for CA state tax return turbotax software automatically used the wrong 4684 form which is year 2021. Please refer to below screenshot.

Actually I tried everything before I contacted support team yesterday, I logged out  the turbotax software, and logged in again, and shutt down my PC, and restarted it, and I even delete this 4684 form and then create it again, however nothing changed.

And support team didn't give me any help, they did nothing, I asked them to email me a note which we were talking about everything, they even denied.

First one is for federal tax return, and second one is CA tax return.

[Taylor2025]

@JarvisPLLC @Justin202203 @AmyC @SilverknightFL @maichele 

I would like to follow this issue,  did they treat  Hurricane Ian as a qualified disaster now? Thank you.

https://www.congress.gov/bill/118th-congress/house-bill/1331/text?s=1&r=18

 

[SilverknightFL]

They did not. 

[DoninGA]

@Taylor2025 Hurricane Ian - Major Disaster

FEMA website - https://www.fema.gov/disaster

South Carolina Hurricane Ian (DR-4677-SC)

Incident Period: September 25, 2022 - October 4, 2022

Major Disaster Declaration declared on November 21, 2022

Seminole Tribe of Florida Hurricane Ian (DR-4675)

Incident Period: September 23, 2022 - November 4, 2022

Major Disaster Declaration declared on September 30, 2022

Florida Hurricane Ian (DR-4673-FL)

Incident Period: September 23, 2022 - November 4, 2022

Major Disaster Declaration declared on September 29, 2022

[SilverknightFL]

It's a federal FEMA disaster, but not declared by Congress for tax purposes, which impacts one line on the forn. 

[DoninGA]

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@SilverknightFL wrote:

It's a federal FEMA disaster, but not declared by Congress for tax purposes, which impacts one line on the forn. 

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On the Form 4684, which line on the form would that be?

IRS Form 4684 - https://www.irs.gov/pub/irs-pdf/f4684.pdf