Get Example Of Completed Form 4684

File Form 8949 with the Schedule D for the return you are filing. This includes Schedule D of Forms 1040, 1040-SR, 1041, 1065, 8865, 1120, 1120-S, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-IC-DISC, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, and 1120-SF; and certain Forms 990-T.

Form 4684 is a U.S. Internal Revenue Service (IRS) form for reporting gains or losses from casualties and thefts that occurred because of a federally declared disaster and which may be deductible for taxpayers who itemize deductions.

California law generally follows federal law regarding the treatment of losses incurred as a result of a casualty or a disaster.

If you had business losses in 2022 due to theft, you may be able to take a tax deduction for those losses. Generally, small business owners can take deductions for the adjusted basis of the stolen property, minus any reimbursements or restitution received or expected.

Casualty and theft losses are deductible losses that arise from the destruction or loss of a taxpayer's personal property. To be deductible, casualty losses must result from a sudden and unforeseen event. Theft losses generally require proof that the property was actually stolen and not just lost or missing.

In order to deduct a theft loss, one has to prove: (1) the occurrence of a theft; (2) the amount of the theft loss; and (3) the year in which the theft loss was discovered. (IRC §165(a)(c)(e)).

Theft losses are generally deductible in the year you discover the property was stolen unless you have a reasonable prospect of recovery through a claim for reimbursement.

There are several steps to calculating a casualty or theft loss: Start with the total loss for each casualty or theft event. Subtract any salvage value. Subtract any insurance or other reimbursements you might receive. Subtract $100. Add up the remaining value of each casualty or theft event for the year.