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Formulario 4684 Instrucciones

Instrucciones para el formulario 4684, Casualties y Robos

Rev. 2023

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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Form 4684  
Casualties and Thefts  
Section references are to the Internal Revenue Code unless otherwise  
noted.  
Personal casualty and theft losses attributable to a qualified disaster  
loss are not subject to the 10% of the AGI reduction and the $100  
reduction is increased to $500.  
An exception to the rule above limiting the personal casualty and theft  
loss deduction to losses attributable to a federally declared disaster  
applies if you have personal casualty gains for the tax year. In this case,  
you will reduce your personal casualty gains by any casualty losses not  
attributable to a federally declared disaster. Any excess gain is used to  
reduce losses from a federally declared disaster.  
General Instructions  
Future Developments  
For the latest information about developments related to Form 4684 and  
its instructions, such as legislation enacted after they were published, go  
For more information, see Disaster Losses, later, the instructions for  
line 14, and Pub. 547.  
What’s New  
Federal Emergency Management Agency (FEMA) disaster declara-  
tion numbers. If you are reporting a casualty or theft loss attributable to  
a federally declared disaster, check the box and enter the DR or EM  
declaration number assigned by FEMA in the space provided above  
line 1 on your 2023 Form 4684. For additional information, see FEMA  
Disaster-related benefits extension. At the time these instructions  
were going to print, new legislation was being considered that would  
extend the rules for the treatment of certain disaster-related personal  
casualty losses.  
To see if this legislation was enacted and how these rules would be  
extended, go to IRS.gov/Form4684.  
AMT adjustment for standard deduction made retroactively inap-  
plicable to net qualified disaster losses. The AMT adjustment for the  
standard deduction doesn't apply to the increase in the standard  
deduction that is attributable to a net disaster loss. See Taxpayers who  
later, for more information.  
Reminders  
Mandatory 60-day postponement. Certain taxpayers affected by a  
federally declared disaster that occurs after December 20, 2019, may be  
eligible for a mandatory 60-day postponement for certain tax deadlines  
such as filing or paying income, excise, and employment taxes; and  
making contributions to a traditional IRA or Roth IRA. For more  
information, see Pub. 547.  
Special rules for capital gains invested in qualified opportunity  
funds (QOFs). If you have a capital gain for 2023, you can invest that  
gain into a QOF and elect to defer part or all of the gain that you would  
otherwise include in income until December 31, 2026. You may also be  
able to permanently exclude gain from the sale or exchange of an  
investment in a QOF if the investment is held for at least 10 years. For  
information about how to elect to use these special rules, see the  
Instructions for Form 8949. For additional information, see Opportunity  
Deferral of gain invested in a QOF. If you realize a gain from an  
actual, or deemed, sale or exchange with an unrelated person and  
during the 180-day period beginning on the date realizing the gain,  
invested an amount of the gain in a QOF, you may be able to elect to  
temporarily defer part or all of the gain that would otherwise be included  
in income. If you make the election, the gain is included in taxable  
income only to the extent, if any, that the amount of realized gain  
exceeds the aggregate amount invested in a QOF during the 180-day  
period beginning on the date the gain was realized.  
How to report the loss on Form 1040-X. You should adjust your  
deductions on Form 1040-X. The Instructions for Form 1040-X show how  
to do this. Explain the reasons for your adjustment and attach Form 4684  
to show how you figured your loss. See Figuring a Loss in Pub. 547.  
If the damaged or destroyed property was nonbusiness property and  
you didn’t itemize your deductions on your original return, you must first  
determine whether the casualty loss deduction now makes it  
advantageous for you to itemize. It is advantageous to itemize if the total  
of the casualty loss deduction and any other itemized deductions is more  
than your standard deduction (and increased standard deduction  
amount, if applicable). If you itemize, attach Schedule A (Form 1040) or  
Schedule A (Form 1040-NR), and Form 4684 to your amended return.  
Fill out Form 1040-X to refigure your tax to find your refund.  
Special rules and return procedures expanded for claiming quali-  
fied disaster-related personal casualty losses. The Taxpayer  
Certainty and Disaster Tax Relief Act of 2019 and the Taxpayer Certainty  
and Disaster Tax Relief Act of 2020 expanded the special rules and  
return procedures for personal casualty losses attributable to certain  
major federal disasters that were declared in 2018, 2019, and 2020.  
How to report. Report the gain as it would otherwise be reported if  
you were not making the election. Report the election for the amount  
invested in a QOF on Form 8949. See Form 8949 for how to make the  
election. You will need to attach Form 8997 annually until you dispose of  
the QOF investment. See the Form 8997 instructions for more  
information.  
Qualified disaster losses in those tax years may be claimed on Form  
4684. See Qualified disaster loss, later, for more information.  
Purpose of Form  
If applicable, you may have to file an amended return on Form  
Use Form 4684 to report gains and losses from casualties and thefts.  
Attach Form 4684 to your tax return.  
1040-X to claim these benefits on your 2018, 2019, and/or 2020  
returns. Form 1040-X is available at IRS.gov/Form1040X. Prior  
TIP  
revisions of Form 4684 are available at IRS.gov/Form4684.  
Definitions  
Three types of casualty losses are described in these instructions.  
Limitation on personal casualty and theft losses. For tax years  
2018 through 2025, if you are an individual, casualty or theft losses of  
personal-use property are deductible only if the loss is attributable to a  
federally declared disaster.  
Personal casualty and theft losses attributable to a federally declared  
disaster are subject to the $100 per casualty and 10% of your adjusted  
gross income (AGI) reductions unless they are attributable to a qualified  
disaster loss.  
All three types of losses refer to federally declared disasters, but the  
requirements for each loss vary. A federally declared disaster is a  
disaster determined by the President of the United States to warrant  
assistance by the federal government under the Robert T. Stafford  
Disaster Relief and Emergency Assistance Act (Stafford Act). A federally  
Jan 8, 2024  
Cat. No. 12998Z  
declared disaster includes (a) a major disaster declaration, or (b) an  
emergency declaration under the Stafford Act.  
full unrecovered amount as a casualty or theft loss and only the part of  
the loss that isn't covered by your insurance policy is deductible.  
Federal casualty loss. A federal casualty loss is an individual’s  
casualty or theft loss of personal-use property that is attributable to a  
federally declared disaster. The casualty loss must occur in a state  
receiving a federal disaster declaration. If you suffered a federal casualty  
loss, you are eligible to claim a casualty loss deduction. If you suffered a  
casualty or theft loss of personal-use property that was not attributable to  
a federally declared disaster, it is not a federal casualty loss, and you  
may not claim a casualty loss deduction unless the exception applies.  
See the Caution under Losses You Can Deduct, later.  
Related expenses. The related expenses you have due to a casualty or  
theft, such as expenses for the treatment of personal injuries or for the  
rental of a car, aren't deductible as casualty or theft losses.  
Costs for protection against future casualties aren't deductible but  
should be capitalized as permanent improvements. An example would  
be the cost of a levee to stop flooding.  
Losses You Can't Deduct  
Money or property misplaced or lost.  
Disaster loss. A disaster loss is a loss that is attributable to a federally  
declared disaster and that occurs in an area eligible for assistance  
pursuant to the Presidential declaration. The disaster loss must occur in  
a county eligible for public or individual assistance (or both). Disaster  
losses are not limited to individual personal-use property and may be  
claimed for individual business or income-producing property and by  
corporations, S corporations, and partnerships. If you suffered a disaster  
loss, you are eligible to claim a casualty loss deduction and to elect to  
claim the loss in the preceding tax year. See Disaster Losses, later.  
Breakage of china, glassware, furniture, and similar items under  
normal conditions.  
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.  
Qualified disaster loss. A qualified disaster loss also includes an  
individual's casualty or theft loss of personal-use property that is  
attributable to:  
Note. Victims of fraudulent investment schemes can claim a theft loss  
deduction if certain conditions apply. See Losses From Ponzi-Type  
Investment Schemes, later, for more information.  
A major disaster declared by the President under section 401 of the  
Stafford Act in 2016;  
Hurricane Harvey;  
Tropical Storm Harvey;  
Gain on Reimbursement  
Hurricane Irma;  
Hurricane Maria;  
If the amount you receive in insurance or other reimbursement is more  
than the cost or other basis of the property, you have a gain. If you have a  
gain, you may have to pay tax on it, or you may be able to postpone the  
gain.  
The California wildfires in 2017 and January 2018;  
A major disaster that was declared by the President under section  
401 of the Stafford Act and that occurred in 2018 and before  
December 21, 2019, and continued no later than January 19, 2020  
(except those attributable to the California wildfires in January 2018  
that received prior relief); and  
Don't report the gain on damaged, destroyed, or stolen property if you  
receive property that is similar or related to it in service or use. Your basis  
in the new property is the same as your basis in the old property.  
A major disaster that was declared by the President during the  
period between January 1, 2020, and February 25, 2021. Also, this  
disaster must have an incident period that began on or after  
December 28, 2019, and on or before December 27, 2020.  
However, this change does not include those losses attributable to  
any major disaster which has been declared only by reason of  
COVID-19 and must have ended no later than January 26, 2021.  
The definition of a qualified disaster loss does not extend to any  
major disaster that has been declared only by reason of COVID-19  
(because the incident period for COVID-19 extended beyond  
January 26, 2021). Thus, given that the incident period for  
COVID-19 generally ran from January 20, 2020 to May 11, 2023, a  
loss due to COVID-19 is not a qualified disaster loss.  
Any tangible replacement property held for use in a trade or business  
is treated as similar or related in service or use to property held for use in  
a trade or business or for investment if:  
The property you are replacing was damaged or destroyed in a  
disaster, and  
The area in which the property was damaged or destroyed was  
declared by the President of the United States to warrant federal  
assistance because of that disaster.  
Generally, you must recognize the gain if you receive unlike property  
or money as reimbursement. But you can generally choose to postpone  
all or part of the gain if, within 2 years of the end of the first tax year in  
which any part of the gain is realized, you purchase:  
If you suffered a qualified disaster loss, you are eligible to claim a  
casualty loss deduction, to elect to claim the loss in the preceding tax  
year, and to deduct the loss without itemizing other deductions on  
Schedule A (Form 1040). See Qualified disaster losses and Increased  
Property similar or related in service or use to the damaged,  
destroyed, or stolen property; or  
A controlling interest (at least 80%) in a corporation owning such  
property.  
See also IRS.gov/DisasterTaxRelief for date-specific declarations  
To postpone all of the gain, the cost of the replacement property must  
associated with these disasters and for more information.  
be equal to or more than the reimbursement you received for your  
property. If the cost of the replacement property is less than the  
reimbursement received, you must recognize the gain to the extent the  
reimbursement exceeds the cost of the replacement property.  
Losses You Can Deduct  
For tax years 2018 through 2025, if you are an individual, losses of  
personal-use property from fire, storm, shipwreck, or other casualty, or  
theft are deductible only if the loss is attributable to a federally declared  
disaster (federal casualty loss). See Pub. 547 for more information.  
If the replacement property or stock is acquired from a related  
person, gain generally can't be postponed by:  
Corporations (other than S corporations);  
If the event causing you to suffer a personal casualty loss occurred  
before January 1, 2018, but the casualty loss was not sustained until  
January 1, 2018, or later, the casualty loss is not deductible. See When  
To Deduct a Loss, later, for more information on when a casualty loss is  
sustained.  
Partnerships in which more than 50% of the capital or profits interest  
is owned by corporations (other than S corporations); or  
All other taxpayers, unless the aggregate realized gains on the  
involuntarily converted property are $100,000 or less for the tax  
year. This rule applies to partnerships and S corporations at both  
the entity and partner or shareholder level.  
An exception to the rule limiting the deduction for personal  
casualty and theft losses to federal casualty losses applies  
!
CAUTION  
where you have personal casualty gains to the extent the losses  
For details on how to postpone the gain, see Pub. 547.  
don’t exceed your gains.  
If your main home was located in a disaster area and that home or  
If your property is covered by insurance, and your loss is otherwise  
deductible, you should file a timely insurance claim for reimbursement of  
your loss. If you don't file a timely insurance claim, you can't deduct the  
any of its contents were damaged or destroyed due to the disaster,  
special rules apply. See Gains Realized on Homes in Disaster Areas,  
later.  
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Instructions for Form 4684 (2023)  
         
Revoking a prior election to deduct loss in the preceding year.  
Complete Part II of Section D if you want to revoke a 2022 disaster year  
election to deduct a federally declared disaster loss in the preceding tax  
year. Attach the completed Section D to an amended return for the  
preceding year (that is, to an amended 2022 return for the revocation of a  
2023 disaster year election). See Section D—Election To Deduct  
Your amended return revoking the election must be filed on or before  
the date that is 90 days after the due date for making the election and on  
or before the date you file any return or amended return for the year that  
includes the disaster loss.  
When To Deduct a Loss  
Generally, you can deduct the part of your casualty or theft loss that isn't  
reimbursable in the tax year the casualty occurred or the theft was  
discovered. However, a disaster loss and a loss from deposits in  
insolvent or bankrupt financial institutions may be treated differently. See  
If in the year of the casualty there is a claim for reimbursement with a  
reasonable prospect of recovery, the loss is not sustained until you know  
with reasonable certainty whether such reimbursement will be received.  
If you aren't sure whether part of your casualty or theft loss will be  
reimbursed, don't deduct that part until the tax year when you become  
reasonably certain that it won't be reimbursed. This later tax year is when  
your loss is sustained.  
Your amended return should refigure your tax liability as a result of  
revoking the election. You must pay or make arrangements to pay any tax  
and interest due as a result of the revocation.  
Home made unsafe by disaster. If your home was located in a  
disaster area and your state or local government ordered you to tear it  
down or move it because it was no longer safe to use as a home due to  
the disaster, the resulting loss in value is treated as a disaster loss. The  
order for you to tear down or move the home must have been issued  
within 120 days after the area was officially declared a disaster area.  
If you are reimbursed for a loss you deducted in an earlier year,  
include the reimbursement in your income in the year you received it, but  
only to the extent the deduction reduced your tax in an earlier year.  
See Lessee's loss in Pub. 547 for special rules on when to deduct  
losses from casualties and thefts to leased property.  
For purposes of figuring the disaster loss, use the value of your home  
before you moved it or tore it down as its fair market value after the  
casualty.  
Disaster Losses  
A disaster loss is a loss that occurred in an area determined by the  
President of the United States to warrant federal disaster assistance and  
that is attributable to a federally declared disaster. It includes a major  
disaster or emergency declaration.  
Qualified disaster losses. A qualified disaster loss also includes an  
individual's casualty or theft loss of personal-use property that is  
attributable to:  
A major disaster declared by the President under section 401 of the  
Stafford Act in 2016;  
For a list of federally declared disasters and disaster areas, see  
TIP  
Hurricane Harvey;  
Tropical Storm Harvey;  
To determine the amount to deduct for a disaster loss, you must take  
into account as reimbursements any benefits you received or which you  
have a reasonable possibility of receiving from federal or state programs  
to restore your property.  
Hurricane Irma;  
Hurricane Maria;  
The California wildfires in 2017 and January 2018; and  
A major disaster that was declared by the President under section  
401 of the Stafford Act and that occurred in 2018 and before  
December 21, 2019, and continued no later than January 19, 2020  
(except those attributable to the California wildfires in January 2018  
that received prior relief).  
Disaster year. The disaster year is the tax year in which you sustained  
the loss attributable to a federally declared disaster. Generally, a disaster  
loss is sustained in the year the disaster occurred. However, a disaster  
loss may also be sustained in a year after the disaster occurred. For  
example, if a claim for reimbursement exists for which there is a  
reasonable prospect of recovery, no part of the loss for which  
reimbursement may be received is sustained until it can be ascertained  
with reasonable certainty whether you will be reimbursed.  
Example. In December 2022, your car was destroyed in severe  
flooding that occurred in the area where you live. The area where you  
lived was designated by FEMA to be eligible for public or individual  
assistance (or both). You immediately filed a claim for reimbursement  
with your insurance company. There was a reasonable prospect that you  
would recover the full amount of your loss. The claim was settled in  
January 2023 when your insurance company reimbursed you for only  
half of your loss. The disaster year is 2023 (not 2022 when the loss  
occurred). Your loss was sustained in 2023 because that’s when it  
became reasonably certain whether you would be reimbursed. You can  
either deduct the unreimbursed loss on your tax return for the disaster  
year (2023) or make an election to deduct the unreimbursed loss on your  
tax return for the preceding year (2022).  
A qualified disaster loss also includes an individual's casualty or  
theft of personal-use property that is attributable to a major disaster  
that was declared by the President during the period between  
January 1, 2020, and February 25, 2021. Also, this disaster must  
have an incident period that began on or after December 28, 2019,  
and on or before December 27, 2020. However, this change does  
not include those losses attributable to a major disaster that has  
been declared only by reason of COVID-19 and must have ended  
no later than January 26, 2021. The definition of a qualified disaster  
loss does not extend to any major disaster that has been declared  
only by reason of COVID-19 (because the incident period for  
COVID-19 extended beyond January 26, 2021). Thus, given that the  
incident period for COVID-19 generally ran from January 20, 2020  
to May 11, 2023, a loss due to COVID-19 is not a qualified disaster  
loss.  
For specific instructions for reporting these qualified disaster losses,  
date-specific declarations associated with these disasters and for more  
information.  
If you realize a gain from the reimbursement on your casualty  
loss, do not report the gain until the year in which that amount is  
!
CAUTION  
received.  
Note. You can deduct qualified disaster losses without itemizing other  
deductions on Schedule A. Moreover, your net casualty loss from these  
qualified disasters doesn’t need to exceed 10% of your adjusted gross  
income (AGI) to qualify for the deduction, but the $100 limit per casualty  
is increased to $500. See Increased standard deduction reporting next  
for more information.  
Election to deduct loss in the preceding year. If you have a casualty  
loss from a federally declared disaster that occurred in an area  
warranting public or individual assistance (or both), you can elect to  
deduct the loss in the tax year immediately before the disaster year. A list  
of areas warranting public or individual assistance (or both) is available  
at the FEMA website at FEMA.gov/Disasters.  
To make this election for a loss in disaster year 2023, complete Part I  
of Section D on your 2021 Form 4684 and attach it to your 2022 original  
or amended return that claims the disaster loss. See Section D—Election  
You must make an election to deduct a 2023 disaster loss on your  
2022 return on or before the date that is 6 months after the regular due  
date for filing your original return (without extensions) for the disaster  
year. For calendar year individual taxpayers, the deadline for electing to  
take a 2023 disaster loss on your 2022 tax return is October 15, 2024.  
Increased standard deduction reporting. If you have a net qualified  
disaster loss and aren’t itemizing your deductions, you can claim an  
increased standard deduction using Schedule A (Form 1040) or  
Schedule A (Form 1040-NR), by doing the following.  
1. Enter the amount from Form 4684, line 15, on the dotted line next to  
line 16 on Schedule A (Form 1040), or line 7 of Schedule A (Form  
1040-NR), and the description “Net Qualified Disaster Loss.”  
2. Also, enter on the dotted line next to line 16 of Schedule A (Form  
1040) or line 7 of Schedule A (Form 1040-NR), your standard  
3
Instructions for Form 4684 (2023)  
       
deduction amount and the description “Standard Deduction  
Claimed With Qualified Disaster Loss.”  
postponing gain, including rules for when the main home is located in a  
disaster area.  
To postpone the gain, you must purchase the replacement property  
before 2028. Your basis in the replacement property equals its cost  
decreased by the amount of any postponed gain.  
3. Combine these two amounts and enter the total in the entry space  
on line 16 of Schedule A (Form 1040), or line 7 of Schedule A  
(Form 1040-NR), and on Form 1040, 1040-SR, or 1040-NR, line 12.  
Nonresident aliens cannot claim the standard deduction.  
Special Treatment for Losses on  
Deposits in Insolvent or Bankrupt  
Financial Institutions  
However, there is an exception. Students or business  
!
CAUTION  
apprentices, who file Form 1040-NR, may be able to take a  
standard deduction if they are eligible for benefits under Article 21(2) of  
the United States-India Income Tax Treaty. They will enter the standard  
deduction amount found for their filing status on Form 1040 or 1040-SR.  
See chapter 5 of Pub. 519 and the Instructions for Form 1040-NR for  
details.  
You can no longer claim a loss on a deposit in an insolvent or  
bankrupt financial institution as a personal casualty or theft loss  
!
CAUTION  
unless the exception mentioned under the Caution under Losses  
You Can Deduct, earlier, applies. See Pub. 547 for more information.  
The alternative minimum tax adjustment for the standard  
deduction is made retroactively inapplicable to net qualified  
!
CAUTION  
Damage From Corrosive Drywall  
6251, Alternative Minimum Tax for Individuals, later, for more information.  
If you suffered property losses due to the effects of certain imported  
drywall installed in homes between 2001 and 2009, under a special  
procedure, you may be able to claim a casualty loss deduction for  
amounts you paid to repair damage to your home and household  
appliances that resulted from corrosive drywall. For details, see Special  
Procedure for Damage From Corrosive Drywall under Casualty in Pub.  
547.  
More information. See Pub. 547 for more information about disaster  
losses.  
Gains Realized on Homes in Disaster  
Areas  
Because the personal casualty losses claimed under this special  
The following rules apply if your main home was located in an area  
declared by the President of the United States to warrant federal  
assistance as the result of a disaster, and the home or any of its contents  
were damaged or destroyed due to the disaster. These rules also apply  
to renters who receive insurance proceeds for damaged or destroyed  
property in a rented home that is their main home.  
procedure are not attributable to a federally declared disaster,  
!
CAUTION  
they're only deductible to the extent such losses don't exceed  
your personal casualty gains.  
Specific Instructions  
1. No gain is recognized on any insurance proceeds received for  
unscheduled personal property that was part of the contents of the  
home.  
Which Sections To Complete  
2. Any other insurance proceeds you receive for the home or its  
contents are treated as received for a single item of property, and  
any replacement property you purchase that is similar or related in  
service or use to the home or its contents is treated as similar or  
related in service or use to that single item of property. Therefore,  
you can choose to recognize gain only to the extent the insurance  
proceeds treated as received for that single item of property exceed  
the cost of the replacement property.  
Use Section A to figure casualty or theft gains and losses for property  
that isn't used in a trade or business or for income-producing purposes.  
Also use Section A to figure casualty or theft losses and gains related to  
the portion of your home used for business if you used the simplified  
method to determine your deductible expenses for business use of your  
home.  
Use Section B to figure casualty or theft gains and losses for property  
that is used in a trade or business or for income-producing purposes.  
3. If you choose to postpone any gain from the receipt of insurance or  
other reimbursement for your main home or any of its contents, the  
period in which you must purchase replacement property is  
extended until 4 years after the end of the first tax year in which any  
part of the gain is realized.  
If property is used partly in a trade or business and partly for personal  
purposes, such as a personal home with a rental unit, figure the personal  
part in Section A and the business part in Section B.  
Use Section C to figure a theft loss deduction from a Ponzi-type  
investment scheme if you qualify to use Revenue Procedure 2009-20, as  
modified by Revenue Procedure 2011-58, and choose to follow the  
procedures in the guidance. Section C of Form 4684 replaces Appendix  
A in Revenue Procedure 2009-20. You don't need to complete Appendix  
For details on how to postpone gain, see Pub. 547.  
Example. Your main home and its contents were completely  
destroyed in 2023 by a tornado in a federally declared disaster area. In  
2023, you received insurance proceeds of $200,000 for the home,  
$25,000 for unscheduled personal property in your home, $5,000 for  
jewelry, and $10,000 for a stamp collection.  
Use Section D to elect (or revoke an election) to deduct in the  
immediately preceding tax year a loss that was attributable to a federally  
declared disaster and occurred in a federally declared disaster area.  
No gain is recognized on the $25,000 of insurance proceeds you  
received for the unscheduled personal property.  
The jewelry and stamp collection were kept in your home and were  
scheduled property on your insurance policy. Your home and its  
replacement contents are considered a single item of property for the  
purpose of recognizing gain on the involuntary conversion of your home  
and its contents.  
If you reinvest $215,000 in a replacement home and its replacement  
contents, you can elect to postpone any gain on your home, jewelry, or  
stamp collection.  
If you reinvest less than the remaining $215,000 of insurance  
proceeds in a replacement home and its replacement contents, you may  
have to recognize any gain to the extent the $215,000 of insurance  
proceeds exceeds the amount you invest in a replacement home and its  
replacement contents.  
See Publication 523, Selling Your Home, for more information on gain  
that may be excluded on a sale, including the receipt of insurance  
proceeds for a destruction of your home. Also see Publication 547,  
Casualties, Disasters, and Thefts, for more information on rules for  
Section A—Personal-Use Property  
Use a separate column for lines 2 through 9 to show each item lost or  
damaged from a single casualty or theft described on line 1. If more than  
four items were lost or damaged, use additional sheets following the  
format of lines 1 through 9.  
Use a separate Form 4684 through line 12 for each casualty or theft  
involving property not used in a trade or business or for  
income-producing purposes. For example, use a separate Form 4684  
through line 12 for property lost or damaged due to any qualified disaster  
described in Qualified disaster loss, earlier.  
Don't include any loss previously deducted on an estate tax return.  
If you are liable for casualty or theft losses to property you lease from  
someone else, see Leased property under Figuring a Loss in Pub. 547.  
FEMA disaster declaration numbers. If you are reporting a casualty  
or theft loss attributable to a federally declared disaster, check the box  
4
Instructions for Form 4684 (2023)  
     
and enter the DR or EM declaration number assigned by FEMA in the  
space provided above line 1 on your 2023 Form 4684. A list of federally  
declared disasters and FEMA disaster declaration numbers is available  
The FEMA disaster declaration number consists of the letters “DR”  
and four numbers, or the letters “EM” and four numbers. For example,  
enter “DR-4712” in the respective entry spaces for the Tennesee Severe  
Thunderstorms and Possible Strong Tornadoes.  
Use and occupancy insurance. If insurance reimburses you for your  
loss of business income, it doesn't reduce your casualty or theft loss. The  
reimbursement is income and is taxed in the same manner as your  
business income.  
Main home destroyed. If you have a gain because your main home  
was destroyed, you can generally exclude the gain from your income as if  
you had sold or exchanged your home. You may be able to exclude up to  
$250,000 of the gain (up to $500,000 if married filing jointly). To exclude  
a gain, you must generally have owned and lived in the property as your  
main home for at least 2 years during the 5-year period ending on the  
date it was destroyed. For information on this exclusion, see Pub. 523,  
Selling Your Home.  
If you exclude the gain and the entire gain is excludable, don't report  
the casualty on Form 4684. If the gain is more than you can exclude,  
reduce the insurance or other reimbursement by the amount of the  
exclusion and enter the result on line 3. Attach a statement showing the  
full amount of insurance or other reimbursement and the amount of the  
exclusion. You may be able to postpone reporting the excess gain if you  
buy replacement property. See Gain on Reimbursement and Gains  
Line 1  
Describe the type of property (for example, furniture, jewelry, car, etc.). If  
you are reporting a loss attributable to a federally declared disaster, and  
you checked the box and entered the FEMA disaster declaration number  
in the space provided above line 1, enter the ZIP code for the property  
most affected on the line for Property A.  
Line 2  
Cost or other basis usually means original cost plus improvements.  
Subtract any postponed gain from the sale of a previous main home.  
Special rules apply to property received as a gift or inheritance. See  
Basis Other Than Cost in Pub. 551 for details. If you inherited the  
property from someone who died in 2010 and the executor of the  
decedent's estate made the election to file Form 8939, Allocation of  
Increase in Basis for Property Received From a Decedent, refer to the  
information provided by the executor or see Pub. 4895, Tax Treatment of  
Property Acquired From a Decedent Dying in 2010, available at  
Line 4  
If you are entitled to an insurance payment or other reimbursement for  
any part of a casualty or theft loss but you choose not to file a claim for  
the loss, you can't realize a gain from that payment or reimbursement.  
Therefore, figure the gain on line 4 by subtracting your cost or other basis  
in the property (line 2) only from the amount of reimbursement you  
actually received. Enter the result on line 4, but don't enter less than  
zero.  
Line 3  
If you filed a claim for reimbursement but didn't receive it until after  
the year of the casualty or theft, include the gain in your income in the  
year you received the reimbursement.  
Enter on this line the amount of insurance or other reimbursement you  
received or expect to receive for each property. Include your insurance  
coverage whether or not you are filing a claim for reimbursement. For  
example, your car worth $2,000 is totally destroyed in a flood in an area  
designated as a federal disaster. You are insured with a $500 deductible,  
but decide not to report it to your insurance company because you are  
afraid the insurance company will cancel your policy. In this case, enter  
$1,500 on this line.  
Lines 5 and 6  
Fair market value (FMV) is the price at which the property would be sold  
between a willing buyer and a willing seller, each having knowledge of  
the relevant facts. The difference between the FMV immediately before  
the casualty or theft and the FMV immediately after represents the  
decrease in FMV because of the casualty or theft.  
If you expect to be reimbursed but haven't yet received payment, you  
must still enter the expected reimbursement from the loss. If, in a later tax  
year, you determine with reasonable certainty that you won't be  
reimbursed for all or part of the loss, you can deduct for that year the  
amount of the loss that isn't reimbursed.  
The FMV of property after a theft is zero if the property isn't  
recovered.  
FMV is generally determined by a competent appraisal. The  
appraiser's knowledge of sales of comparable property about the same  
time as the casualty or theft, knowledge of your property before and after  
the occurrence, and the methods of determining FMV are important  
elements in proving your loss.  
Types of reimbursements. Insurance is the most common way to be  
reimbursed for a casualty or theft loss, but if:  
Part of a federal disaster loan is forgiven, the part you don't have to  
pay back is considered a reimbursement;  
The person who leases your property must make repairs or must  
repay you for any part of a loss, the repayment and the cost of the  
repairs are considered reimbursements;  
The appraised value of property immediately after the casualty must  
be adjusted (increased) for the effects of any general market decline that  
may occur at the same time as the casualty or theft. For example, the  
value of all nearby property may become depressed because it is in an  
area where such occurrences are commonplace. This general decline in  
market value isn't part of the property's decrease in FMV as a result of  
the casualty or theft.  
A court awards you damages for a casualty or theft loss, the amount  
you are able to collect, minus lawyers' fees and other necessary  
expenses, is a reimbursement;  
You accept repairs, restoration, or cleanup services provided by  
relief agencies, it is considered a reimbursement; or  
A bonding company pays you for a theft loss, the payment is also  
considered a reimbursement.  
Replacement cost or the cost of repairs isn't necessarily FMV.  
However, you may be able to use the cost of repairs to the damaged  
property as evidence of loss in value if:  
Lump-sum reimbursement. If you have a casualty or theft loss of  
several assets at the same time and you receive a lump-sum  
reimbursement, you must divide the amount you receive among the  
assets according to the fair market value of each asset at the time of the  
loss.  
The repairs are actually made;  
The repairs are necessary to restore the property to the condition it  
was in immediately before the casualty;  
The amount spent for repairs isn't excessive;  
The repairs only correct the damage caused by the casualty; and  
The value of the property after the repairs isn't, as a result of the  
repairs, more than the value of the property immediately before the  
casualty.  
Grants, gifts, and other payments. Grants and other payments you  
receive to help you after a casualty are considered reimbursements only  
if they must be used specifically to repair or replace your property. Such  
payments will reduce your casualty loss deduction. If there are no  
conditions on how you have to use the money you receive, it isn't a  
reimbursement.  
To figure a casualty loss to real estate not used in a trade or business,  
or for income-producing purposes, measure the decrease in value of the  
property as a whole. All improvements, such as buildings, trees, and  
5
Instructions for Form 4684 (2023)  
     
shrubs, are considered together as one item. Figure the loss separately  
for other items. For example, figure the loss separately for each piece of  
furniture.  
1040), line 4. Estates and trusts include this amount on Schedule D  
(Form 1041), line 4.  
Combine your long-term gains with your long-term losses and  
include the net long-term gain or (loss) on Schedule D (Form 1040),  
line 11. Estates and trusts include this amount on Schedule D (Form  
1041), line 11.  
Safe harbor methods for determining casualty and theft losses.  
See Revenue Procedure 2018-08, 2018-2 I.R.B. 286, available at  
IRS.gov/IRB/2018-02_IRB, for safe harbor methods that you may use in  
determining the amount of your casualty and theft losses for your home  
and personal belongings.  
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. 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.  
The holding period for long-term gains and losses is more than 1  
year. For short-term gains and losses, it is 1 year or less. To figure the  
holding period, begin counting on the day after you received the property  
and include the day the casualty or theft occurred.  
Generally, if you inherit property, you are considered to have held the  
property for longer than 1 year, regardless of how long you actually held  
it. If you inherited property from someone who died in 2010 and the  
executor made the election to file Form 8939, refer to the information  
provided by the executor or see Pub. 4895, available at IRS.gov/Pub/  
IRS-Prior/p4895--2011.pdf, to determine your holding period.  
Net loss. If line 13 is less than line 14 and you have qualified disaster  
Line 11  
losses subject to the $500 reduction on line 11 on any Form(s) 4684:  
Subtract line 13 from line 14. Enter the smaller of this difference or  
the amount on line 12 of the Form 4684 listing those qualified  
disaster losses. The amount is your net qualified disaster loss. If you  
are itemizing your deductions, enter the amount on line 16 of  
Schedule A (Form 1040), or line 7 of Schedule A (Form 1040-NR),  
and “Net Qualified Disaster Loss.If you are claiming the increased  
standard deduction, enter the amount on line 16 of Schedule A  
(Form 1040), or line 7 of Schedule A (Form 1040-NR), and “Net  
Qualified Disaster Loss.Also, do not include this amount on line 15  
of Schedule A (Form 1040), or line 6 of Schedule A (Form  
1040-NR), if you are not itemizing your deductions.  
If you sustained a qualified disaster loss, including those sustained in  
2023, add the amounts on line 4 of all Forms 4684. Compare the sum  
with the amount on line 10. If the amount on line 10 is larger, enter $500  
on line 11 of the Form 4684 reporting the qualified disaster losses.  
If the amount on line 10 is smaller, or if you are reporting a disaster  
loss, enter $100 and complete the remainder of the form without  
applying the special rules for qualified disaster losses.  
Line 13  
Complete the rest of Schedule A either by:  
Itemizing other deductions as usual; or  
Enter on this line the amounts from line 4 of all Forms 4684 reporting a  
gain.  
Including the amount of your standard deduction on the dotted line  
next to Schedule A (Form 1040), line 16, or Schedule A (Form  
1040-NR), line 7. Also, enter “Standard Deduction Claimed With  
Qualified Disaster Loss” on that dotted line next to this amount. See  
the instructions for Schedule A (Form 1040) or the Instructions for  
Form 1040-NR for more information. If you are also filing Form 6251,  
Line 14  
Note. An exception to the rule that disallows a deduction for personal  
casualty and theft losses other than those attributable to federally  
declared disasters applies if you have personal casualty gains reported  
on line 13 of your Form 4684. You will deduct the portion of your personal  
casualty losses not attributable to a federally declared disaster to the  
extent the loss doesn't exceed your personal casualty gains. Any  
remaining personal casualty gains will be used to reduce the amount of  
your deductible federal casualty losses.  
Don’t complete the rest of this section if all your personal casualty  
and theft losses are qualified disaster losses subject to the $500  
reduction.  
If line 13 is less than line 14 and you have no qualified disaster losses  
subject to the $500 reduction on line 11 of your Form 4684, enter zero  
and go to line 16 and complete the rest of the section.  
If you have personal casualty losses that are not attributable to a  
federally declared disaster, such as those described above, use  
Worksheet 1-1 to calculate the amount you should enter on line 14.  
Otherwise, add the amounts on line 12 of all Forms 4684 and enter that  
total on line 14.  
Taxpayers who also file the 2023 Form 6251, Alternative  
Minimum Tax for Individuals. If you file Schedule A (Form 1040) or  
Schedule A (Form 1040-NR) just to claim an increased standard  
deduction on Form 1040, 1040-SR, or 1040-NR, due to a loss you  
suffered related to property in a federally declared disaster area, enter  
zero on Form 6251, line 2a. Next, include the amount of your standard  
deduction (before it is increased by any net qualified disaster loss) in the  
total on line 3. This is the amount you listed on the dotted line next to  
Schedule A (Form 1040), line 16 or Schedule A (Form 1040-NR), line 7.  
Worksheet 1-1. Losses Not Attributable to a  
Federally Declared Disaster—Line 14  
1. Add the amounts from line 12 of all Forms 4684  
reporting losses not attributable to a federally  
declared disaster . . . . . . . . . . . . . . . . . 1.  
If you filed Schedule A to itemize your deductions, then don’t make  
this adjustment.  
2. Add the amounts from line 12 of all Forms 4684  
reporting losses attributable to a federally  
Line 17  
declared disaster. . . . . . . . . . . . . . . . . . 2.  
3. Enter the smaller of line 1 or line 13 of Form  
Estates and trusts figure AGI in the same way as individuals, except that  
the costs of administration are allowed in figuring AGI.  
4684 . . . . . . . . . . . . . . . . . . . . . . . . . 3.  
4. Add lines 2 and 3. Enter the result here and on  
Form 4684, line 14 . . . . . . . . . . . . . . . . . 4.  
Section B—Business and Income-Producing  
Property  
You can no longer claim any miscellaneous itemized deductions.  
Line 15  
As a result, business casualty and theft losses of property used  
!
CAUTION  
Note. You will complete line 15 differently depending on whether you  
in performing services as an employee cannot be deducted or  
have a net gain or loss and whether you have a qualified disaster loss.  
applied in the netting process to offset gains.  
Use a separate column of Part I, lines 20 through 27, to show each  
item lost or damaged from a single casualty or theft described on line 19.  
If more than four items were lost or damaged, use additional sheets  
following the format of Part I, lines 19 through 27.  
Net gain. If line 13 is more than line 14, you have a net gain. Report the  
gain as follows.  
Combine your short-term gains with your short-term losses and  
include the net short-term gain or (loss) on Schedule D (Form  
6
Instructions for Form 4684 (2023)  
         
Use a separate Form 4684, Section B, Part I, for each casualty or  
theft involving property used in a trade or business or for  
income-producing purposes. Use one Section B, Part II, to combine all  
Sections B, Part I.  
Line 19  
If you are claiming a loss from a fraudulent investment arrangement and  
you are not filling out Section C, you must enter the name, taxpayer  
identification number (if known), and address (if known) of the individual  
or entity that conducted the fraudulent arrangement. Complete the rest of  
Section B, Part I.  
For details on the treatment of casualties or thefts to business or  
income-producing property, including rules on the loss of inventory  
through casualty or theft, see Figuring a Loss in Pub. 547.  
Line 20  
Home Used for Business or Rented Out  
If you had a casualty or theft loss involving a home you used for business  
or rented out, your deductible loss may be limited. First, complete Form  
4684, Section B, lines 19 through 26. If the loss involved a home used for  
a business for which you are filing Schedule C (Form 1040), Profit or  
Loss From Business, figure your deductible casualty or theft loss on  
Form 8829, Expenses for Business Use of Your Home (if you are using  
Form 8829). Enter on Form 4684, line 27, the deductible loss from Form  
8829, line 35, and “See Form 8829” above line 27. For a home you  
rented out or used for a business for which you aren't filing Schedule C  
(Form 1040), see section 280A(c)(5) to figure your deductible loss.  
Attach a statement showing your computation of the deductible loss,  
enter that amount on line 27, and enter “See attached statement” above  
line 27.  
Cost or adjusted basis usually means original cost plus improvements,  
minus depreciation allowed or allowable (including any section 179  
expense deduction), amortization, depletion, etc. Special rules apply to  
property received as a gift or inheritance. See Basis Other Than Cost in  
Pub. 551 for details. If you inherited the property from someone who died  
in 2010 and the executor of the decedent's estate made the election to  
file Form 8939, refer to the information provided by the executor or see  
Pub. 4895, available at IRS.gov/Pub/IRS-Prior/p4895--2011.pdf.  
If you dispose of a portion of a Modified Accelerated Cost Recovery  
System (MACRS) asset as a result of a casualty event, enter the  
adjusted basis of the disposed portion of the asset. MACRS assets  
include buildings (and their structural components) and other tangible  
depreciable property placed in service after 1986 that is used in a trade  
or business or for the production of income. The adjusted basis of the  
disposed portion of the asset is the adjusted depreciable basis of that  
disposed portion at the time of its disposition, as determined under the  
applicable convention. You must reduce the basis and the depreciation  
reserve of the MACRS asset by the basis and depreciation reserve  
attributable to the disposed portion as of the first day of the tax year,  
before you compute the depreciation deduction for the current year. To  
figure the depreciation deductions for the remaining MACRS asset and  
the disposed portion, see the instructions for Form 4562, line 19, column  
(g). For more information, see Regulations section 1.168(i)-8. For partial  
dispositions from casualties to MACRS assets accounted for in a  
General Asset Account, see Regulations section 1.168(i)-1.  
If you used the simplified method to determine your deductible  
expenses for business use of your home for 2023, figure the casualty or  
theft loss for the home office in Section A instead of on Form 8829 and  
Section B.  
Property Used in a Passive Activity  
A gain or loss from a casualty or theft of property used in a passive  
activity isn't taken into account in determining the loss from a passive  
activity unless losses similar in cause and severity recur regularly in the  
activity. See Form 8582, Passive Activity Loss Limitations, and its  
instructions for details.  
Line 21  
Losses From Ponzi-Type Investment Schemes  
See the instructions for line 3, earlier.  
Line 22  
The IRS has issued the following guidance to assist taxpayers who are  
victims of losses from Ponzi-type investment schemes.  
Revenue Ruling 2009-9, 2009-14 I.R.B. 735 (available at  
Revenue Procedure 2009-20, 2009-14 I.R.B. 749 (available at  
See the instructions for line 4, earlier.  
Lines 23 and 24  
Revenue Procedure 2011-58, 2011-50 I.R.B. 849 (available at  
If you qualify to use Revenue Procedure 2009-20, as modified by  
See the instructions for lines 5 and 6 for details on determining FMV.  
Revenue Procedure 2011-58, and choose to follow the procedures in the  
guidance, first fill out Section C to determine the amount to enter on  
Section B, line 28. Skip lines 19 through 27. Section C of Form 4684  
replaces Appendix A in Revenue Procedure 2009-20. You don't need to  
complete Appendix A.  
Loss on each item figured separately. Unlike a casualty loss to  
personal-use real estate, in which all improvements are considered one  
item, a casualty loss to business or income-producing property must be  
figured separately for each item. For example, if casualty damage occurs  
to both a building and to trees on the same piece of real estate, measure  
the loss separately for the building and for the trees.  
For more information, see the instructions for Section C, later, and the  
above revenue ruling and revenue procedures.  
Line 28  
If you choose not to use the procedures in Revenue Procedure  
2009-20, you may claim your theft loss by filling out Section B, lines 19  
through 39, as appropriate.  
If the amount on line 28 includes losses on property held 1 year or less,  
and losses on property held for more than 1 year, you must allocate the  
amount between lines 29 and 34 according to how long you held each  
property. Enter on line 29 all gains and losses on property held 1 year or  
less. Enter on line 34 all gains and losses on property held more than 1  
year, except as provided in the instructions for line 33.  
Section 179 Property of a Partnership or S  
Corporation  
Partnerships and S corporations that have a casualty or theft involving  
property for which the section 179 expense deduction was previously  
claimed and passed through to the partners or shareholders must not  
use Form 4684 to report the transaction. Instead, see the Instructions for  
Form 4797 for details on how to report it. Partners and S corporation  
shareholders who receive a Schedule K-1 reporting such a transaction  
should see the Instructions for Form 4797 for details on how to figure the  
amount to enter on Form 4684, line 20.  
If you are claiming a theft loss from a Ponzi-type investment scheme  
and are following the procedures in Revenue Procedure 2009-20,  
2009-14 I.R.B. 749, enter on line 28 the amount from Section C, line 51.  
Don't complete Section B, lines 19 through 27, of Form 4684 for that  
loss. You must fill out Section B, Part II.  
7
Instructions for Form 4684 (2023)  
 
Part II, Column (a)  
Line 38a  
On lines 29 and 34, use a separate line to identify each casualty or theft.  
If you have more than two casualties or thefts, attach an additional sheet  
following the format of lines 29 and 34.  
Taxpayers, other than partnerships and S corporations, if Form 4797 isn't  
otherwise required, enter the amount from this line on the appropriate  
line for the form you are filing.  
Example. Ishmael is claiming two casualty losses for his business  
property. One loss is due to a fire in July and the other loss is due to a  
hurricane in October. He fills out one Section B, Part I, for the fire and  
another separate Section B, Part I, for the hurricane. He held the  
property for 1 year or less. He fills out only one Section B, Part II, to  
summarize the two losses he is claiming. On line 29, he enters “Fire” on  
the first line and “Hurricane” on the second line.  
Form 1040, 1040-SR, or 1040-NR filers. Enter this amount on your  
Schedule 1 (Form 1040), line 4. Next to that line, enter “4684.”  
Form 1120, 1120-F, and 1120-POL filers. See the Instructions for  
Schedule D (Form 1120) for where to report this amount.  
Section C—Theft Loss Deduction for Ponzi-Type  
Investment Scheme Using the Procedures in  
Revenue Procedure 2009-20  
If you are claiming a theft loss from a Ponzi-type investment  
scheme, enter the name of the individual or entity that  
conducted the fraudulent arrangement.  
TIP  
Fill out Section C if you claim a theft loss deduction for a Ponzi-type  
investment scheme and you meet both of the following conditions.  
You qualify to use Revenue Procedure 2009-20, as modified by  
Revenue Procedure 2011-58.  
Part II, Column (b)(i)  
You choose to follow the procedures in the guidance.  
Enter the part of line 28 from trade, business, rental, or royalty property.  
Part II, Column (b)(ii)  
If you meet both conditions, fill out Section C in lieu of Appendix A in  
Revenue Procedure 2009-20.  
For more information about claiming a theft loss deduction from a  
Ponzi-type investment scheme, see the following guidance.  
Enter the part of line 28 from income-producing property.  
Income-producing property is property held for investment, such as  
stocks, notes, bonds, gold, silver, vacant lots, and works of art.  
Revenue Ruling 2009-9, 2009-14 I.R.B. 735 (available at  
Revenue Procedure 2009-20, 2009-14 I.R.B. 749 (available at  
Part II, Column (c)  
Revenue Procedure 2011-58, 2011-50 I.R.B. 849 (available at  
On line 29, enter the part of line 22 that is from property held for 1 year or  
less.  
Don't fill out Section C if you don't qualify to use the procedures  
in Revenue Procedure 2009-20, as modified by Revenue  
!
CAUTION  
Procedure 2011-58, or you don't choose to follow them. Instead,  
On line 34, enter the part of line 22 that is from property held for more  
than 1 year.  
go to the instructions for Section B.  
Line 40  
Line 30  
Enter the initial amount of cash or basis of property that you invested in  
the investment arrangement. Don't include any of the following on this  
line, line 41, or line 42.  
Include in the total any amounts from the additional sheet you attached  
because you had more than two casualties or thefts on line 29.  
Amounts borrowed from the responsible group and invested in the  
specified fraudulent arrangement, to the extent the borrowed  
amounts weren't repaid at the time the theft was discovered.  
Amounts such as fees that were paid to the responsible group and  
deducted for federal income tax purposes.  
Line 31  
If Form 4797, Sales of Business Property, isn't otherwise required, enter  
the amount from this line on your Schedule 1 (Form 1040), line 4. Next to  
that line, enter “Form 4684.”  
Amounts reported to you (the qualified investor) as taxable income  
that weren't included in gross income on the investor's federal  
income tax returns.  
Cash or property that you (the qualified investor) invested in a fund  
or other entity (separate from you (the qualified investor) for federal  
income tax purposes) that invested in a specified fraudulent  
arrangement.  
Line 32  
Estates and trusts, enter the amount from line 32 on the “Other  
deductions” line of your tax return. Partnerships, enter on Form 1065,  
Schedule K, line 13d. S corporations, enter on Form 1120-S,  
Schedule K, line 12d. Next to that line, enter “Form 4684.”  
For definitions of responsible group, specified fraudulent  
arrangement, and qualified investor, see Section 4 of Revenue  
Procedure 2009-20.  
Line 33  
Line 41  
If you had a casualty or theft gain from certain trade, business, or  
income-producing property held more than 1 year, you may have to  
recapture part or all of the gain as ordinary income. See the instructions  
for Form 4797, Part III, for more information on the types of property  
subject to recapture. If recapture applies, complete Form 4797, Part III,  
and this line, instead of Form 4684, line 34.  
Enter the amounts of cash or the basis of property that you invested after  
you made the initial investment (including amounts reinvested).  
Line 42  
Line 35  
Enter the total amounts of net income (for example, interest and  
dividends minus expenses) from the specified fraudulent arrangement  
that, consistent with information received from that arrangement, you  
included in income for federal tax purposes for all tax years before the  
discovery year, including tax years for which a refund is barred by the  
statute of limitations.  
Include in the total any amounts from the additional sheet you attached  
because you had more than two casualties or thefts.  
8
Instructions for Form 4684 (2023)  
 
Section D—Election To Deduct Federally  
Discovery year. The discovery year is the tax year when one of the  
following occurs.  
Declared Disaster Loss in Preceding Tax Year  
The indictment, information, or complaint described in section  
4.02(1) or (2) of Revenue Procedure 2009-20 (as modified by  
Revenue Procedure 2011-58) is filed.  
Read the discussion under Disaster Losses, earlier. Then fill out  
Section D if you want to elect to deduct a disaster loss on your tax return  
for the preceding year. You may also fill out Section D if you want to  
revoke a previous election to deduct a disaster loss in the tax year  
immediately preceding the disaster year.  
The complaint or similar document described in section 4.02(3) of  
Revenue Procedure 2009-20 (as modified by Revenue Procedure  
2011-58) is filed, or the death of the lead figure occurs, whichever is  
later.  
Part I—Election Statement  
Line 44  
Fill out Part I if you want to make an election to deduct a loss attributable  
to a federally declared disaster and that occurred in a federally declared  
disaster area in the tax year immediately preceding the tax year the loss  
was sustained. By making this election, you agree not to deduct the loss  
for the disaster year.  
Enter the total amount of cash or property that you withdrew from the  
investment arrangement in all years (whether designated as income or  
principal).  
Attach Section D to your original return or amended return for the tax  
year immediately preceding the tax year the loss was sustained to claim  
the disaster loss deduction.  
Line 45  
This is the amount of your investment that is eligible for a deduction  
before any actual or potential recoveries are taken into account.  
You must make this election on or before the date that is 6 months  
after the regular due date for filing your original return (without  
extensions) for the disaster year.  
Line 46  
Potential third-party recovery. This is the amount of all actual or  
potential claims for recovery, as of the last day of the discovery year  
(defined earlier), that are not from potential insurance or Securities  
Investor Protection Corporation (SIPC) recovery, or a potential direct  
recovery.  
Part II—Revocation of Prior Election  
Fill out Part II if you want to revoke a prior election to deduct a loss  
attributable to a federally declared disaster and that occurred in a  
federally declared disaster area in the tax year immediately preceding  
the tax year the loss was sustained.  
Potential insurance/SIPC recovery. This is the total of all actual or  
potential claims for reimbursement that, as of the last day of the  
discovery year, are attributable to:  
Attach Section D to your amended return for the tax year immediately  
preceding the tax year the loss was sustained to revoke the previous  
disaster loss deduction. You must file this amended return for the  
preceding year on or before the date you file the original return or  
amended return for the disaster year on which you claim the disaster  
loss.  
Insurance policies in your name that protect you from this type of  
loss;  
Contractual arrangements, other than insurance, that guaranteed or  
otherwise protected against this type of loss; or  
Amounts payable from SIPC, as advances for customer claims  
under the Securities Investor Protection Act of 1970, or by a similar  
entity under a similar provision.  
You can revoke the prior election on or before the date that is 90 days  
after the due date for making the election.  
Potential direct recovery. This is the amount of all actual or potential  
claims for recovery, as of the last day of the discovery year (defined  
earlier), against the responsible individual or group.  
Paperwork Reduction Act Notice. We ask for the information on this  
form to carry out the Internal Revenue laws of the United States. You are  
required to give us the information. We need it to ensure that you are  
complying with these laws and to allow us to figure and collect the right  
amount of tax.  
Line 48  
Enter the amounts you actually received as a reimbursement or recovery  
from any source. Don't include amounts that are potential direct  
recoveries (defined earlier) or potential third-party recoveries (defined  
earlier).  
You aren't required to provide the information requested on a form  
that is subject to the Paperwork Reduction Act unless the form displays a  
valid OMB control number. Books or records relating to a form or its  
instructions must be retained as long as their contents may become  
material in the administration of any Internal Revenue law. Generally, tax  
returns and return information are confidential, as required by section  
6103.  
Line 49  
The time needed to complete and file this form will vary depending on  
individual circumstances. The estimated burden for individual taxpayers  
filing this form is approved under OMB control number 1545-0074 and is  
included in the estimates shown in the instructions for their individual  
income tax return. The estimated burden for all other taxpayers who file  
this form is shown below.  
Enter the amount of potential insurance/SIPC recovery (defined earlier).  
Line 51  
Enter the amount from line 51 on line 28 of Section B. Don't complete  
lines 19 through 27 for this loss. Then complete Section B, Part II.  
Recordkeeping. . . . . . . . . . . . . . .  
2 hr., 37 min.  
If you had other casualties or thefts, fill out a separate Section B,  
Part I, for them.  
TIP  
Learning about the law or the  
form . . . . . . . . . . . . . . . . . . . . . . .  
24 min.  
Preparing the form . . . . . . . . . . . .  
1 hr., 58 min.  
Part II  
Copying, assembling, and  
sending the form to the IRS . . . . .  
Read the statements and declarations in this part carefully. Enter the  
required information in the spaces provided. You are agreeing to these  
statements and declarations when you sign your tax return. The  
information you enter in this part will be used to verify the fraudulent  
investment arrangement.  
1 hr., 3 min.  
If you have comments concerning the accuracy of these time  
estimates or suggestions for making this form simpler, we would be  
9
Instructions for Form 4684 (2023)  
 
happy to hear from you. See the instructions for the tax return with which  
this form is filed.  
10  
Instructions for Form 4684 (2023)