When will TurboTax Form 4684 worksheets support IRS Rev. Proc. 2018-09, which establishes a Cost Indexes Safe Harbor Method for Hurricane Harvey losses?

[obelisktoucher]

IRS has published a Cost Indexes procedure for calculating disaster losses.  Based on location & level of damage, you can simply multiply the square footage of the structure by a dollar amount to calculate the loss.  Easier than the Fair Market Value calculation, and the calculation is allowed "Safe Harbor" status so that you avoid any hassles with value estimates.  However, the instructions for using this procedure say (https://www.irs.gov/forms-pubs/rda-2017-12-14-2018-rev-proc-08:(

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Reporting Requirements on Form 4684 Attach a statement to Form 4684 stating that you used Rev. Proc. 2018-08 to determine the amount of your casualty loss. Include the specific safe harbor method 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 under the relevant safe harbor method on line 7. 

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I can't figure out a way to convince TurboTax to let me do this... 

[Doninflorida]

I have the same issue.  Trying to use DeMinimis safe harbor method.  TurboTax does not do Form 4684 correctly.  Rev Proc 2018-08 requires leaving lines 5&6 blank and entering loss on line 7.  IRS requires a statement attached to return which TurboTax does not generate.  Only way out is to override Form 4684 and manually prepare a statement and then mail in return.

[beachm]

I asked the same question last week of the community. I'm not sure how to tell Turbo Tax directly that they need to fix this form for the Safe Harbor claims.

[Doninflorida]

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.

[CarolC]

@donald.marvin You are correct.  Thank you for adding this information.  Due to the need to override some Form 4684 line entries, when using the Cost Indexes Safe Harbor method, the tax return will need to be mailed in.  See this TurboTax FAQ on how to perform an override in TurboTax desktop versions:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/3299946">https://ttlc.intuit.com/replies/3299946</a>.

[CarolC]

You cannot e-file and include the statement using the TurboTax Online versions.  You will need to mail in your tax return.  However, you can e-file and include the statement using the TurboTax desktop version (Deluxe, Premier, Home & Business).  To do so, view the return in Forms Mode.  Select the Open Form button at the top.  Then type Blank in the search bar.  A blank form will generate and your statement can be written there.

You must include a statement with Form 4684, Casualties and Thefts, to use one of the IRS allowed Safe Harbor Methods for "determining the amount of your casualty and theft losses for your home and personal belongings."

The attached statement should state the specific Revenue Procedure you used to determine the amount of your casualty loss.  Click this IRS link Instructions for Form 4684 for additional details on what to include in your statement.  Scroll down to page 5.