Department of the Treasury

Internal Revenue Service

Publication 584-B

(Rev. October 2017)

Cat. No. 31749K

Business Casualty, Disaster, and Theft Loss Workbook

Oct 16, 2017

What’s New

Disaster tax relief was enacted for those impacted by Hurricane Harvey, Irma, or Maria, including provisions that modified the calculation of casualty and theft losses of personal-use property. See Pub. 976, Disaster Relief, for more information about these and other disaster tax relief provisions that may not be covered in this publication.

Reminders

Future developments. For the latest information about developments related to Pub. 584-B, such as legislation enacted after it was published, go to IRS.gov/Pub584B.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1﻿-﻿800-THE-LOST (1﻿-﻿800﻿-﻿843﻿-﻿5678) if you recognize a child.

Introduction

This workbook is designed to help you figure your loss on business and income-producing property in the event of a disaster, casualty, or theft. It contains schedules to help you figure the loss to your office furniture and fixtures, information systems, motor vehicles, office supplies, buildings, and equipment. These schedules, however, are for your information only. You must complete Form 4684, Casualties and Thefts, to report your loss.

How To Use This Workbook

You can use this workbook by following these five steps.

Read Pub. 547 to learn about the tax rules for casualties, disasters, and thefts.

Know the definitions of adjusted basis and fair market value, discussed below.

Fill out Schedules 1 through 6.

Read the Instructions for Form 4684.

Fill out Form 4684 using the information you entered in Schedules 1 through 6.

Use the chart below to find out how to use Schedules 1 through 6 to fill out Form 4684.

Take what's in each row of...

And enter it on Form 4684...

Column 1

Line﻿ ﻿19

Column 2

Line﻿ ﻿20

Column 3

Line﻿ ﻿21

Column 4

Line﻿ ﻿22

Column 5

Line﻿ ﻿23

Column 6

Line﻿ ﻿24

Column 7

Line﻿ ﻿25

Column 8

Line﻿ ﻿26

Column 9

Line﻿ ﻿27

Adjusted basis.

Adjusted basis usually means original cost plus improvements, minus depreciation allowed or allowable (including any section 179 expense deduction), amortization, depletion, etc. If you didn’t acquire the property by purchasing it, your basis is determined as discussed in Pub. 551. 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.

Fair market value.

Fair market value is the price for which you could sell your property to a willing buyer, when neither of you has to sell or buy and both of you know all the relevant facts. When filling out Schedules 1 through 6, you need to know the fair market value of the property immediately before and immediately after the disaster or casualty.

Deduction limits.

If your casualty or theft loss involved a home you used for business or rented out, your deductible loss may be limited. See the Instructions for Form 4684, Section B. If the casualty or theft loss involved property used in a passive activity, see Form 8582 and its instructions.

The casualty and theft loss deduction for employee property, when added to your job expenses and most other miscellaneous itemized deductions on Schedule﻿ ﻿A (Form 1040), must be reduced by 2% of your adjusted gross income. Employee property is property used in performing services as an employee.

Comments and Suggestions

 We welcome your comments about this publication and your suggestions for future editions.

You can send us comments through IRS.gov/FormComments. Or you can write to:

Internal Revenue Service

Tax Forms and Publications

1111 Constitution Ave. NW, IR-6526

Washington, DC 20224

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications.

Ordering forms and publications.

Visit IRS.gov/FormsPubs to download forms and publications. Otherwise, you can go to IRS.gov/OrderForms to order current and prior-year forms and instructions. Your order should arrive within 10 business days.

Tax questions.

If you have a tax question not answered by this publication, check IRS.gov and How To Get Tax Help .

How To Get Tax Help

If you have questions about a tax issue, need help preparing your tax return, or want to download free publications, forms, or instructions, go to IRS.gov and find resources that can help you right away.

Preparing and filing your tax return.

Find free options to prepare and file your return on IRS.gov or in your local community if you qualify.

The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $54,000 or less, persons with disabilities, and limited-English-speaking taxpayers who need help preparing their own tax returns. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors.

You can go to IRS.gov to see your options for preparing and filing your return which include the following.

Free File. Go to IRS.gov/FreeFile. See if you qualify to use brand-name software to prepare and e-file your federal tax return for free.

VITA. Go to IRS.gov/VITA, download the free IRS2Go app, or call 1﻿-﻿800﻿-﻿906﻿-﻿9887 to find the nearest VITA location for free tax preparation.

TCE. Go to IRS.gov/TCE, download the free IRS2Go app, or call 1﻿-﻿888﻿-﻿227﻿-﻿7669 to find the nearest TCE location for free tax preparation.

Getting answers to your tax questions. On IRS.gov get answers to your tax questions anytime, anywhere.

Go to IRS.gov/Help or IRS.gov/LetUsHelp pages for a variety of tools that will help you get answers to some of the most common tax questions.

Go to IRS.gov/ITA for the Interactive Tax Assistant, a tool that will ask you questions on a number of tax law topics and provide answers. You can print the entire interview and the final response for your records.

Go to IRS.gov/Pub17 to get Pub. 17, Your Federal Income Tax for Individuals, which features details on tax-saving opportunities, 2017 tax changes, and thousands of interactive links to help you find answers to your questions. View it online in HTML, as a PDF, or download it to your mobile device as an eBook.

You may also be able to access tax law information in your electronic filing software.

Getting tax forms and publications.

Go to IRS.gov/Forms to view, download, or print all of the forms and publications you may need. You can also download and view popular tax publications and instructions (including the 1040 instructions) on mobile devices as an eBook at no charge. Or, you can go to IRS.gov/OrderForms to place an order and have forms mailed to you within 10 business days.

Access your online account (Individual taxpayers only).

Go to IRS.gov/Account to securely access information about your federal tax account.

View the amount you owe, pay online or set up an online payment agreement.

Access your tax records online.

Review the past 18 months of your payment history.

Go to IRS.gov/SecureAccess to review the required identity authentication process.

Using direct deposit.

The fastest way to receive a tax refund is to combine direct deposit and IRS e-file. Direct deposit securely and electronically transfers your refund directly into your financial account. Eight in 10 taxpayers use direct deposit to receive their refund. IRS issues more than 90% of refunds in less than 21 days.

Delayed refund for returns claiming certain credits.

Due to changes in the law, the IRS can’t issue refunds before mid-February 2018, for returns that properly claimed the earned income credit (EIC) or the additional child tax credit (ACTC). This applies to the entire refund, not just the portion associated with these credits.

Getting a transcript or copy of a return.

The quickest way to get a copy of your tax transcript is to go to IRS.gov/Transcripts. Click on either "Get Transcript Online" or "Get Transcript by Mail" to order a copy of your transcript. If you prefer, you can:

Order your transcript by calling 1﻿-﻿800﻿-﻿908﻿-﻿9946.

Mail Form 4506-T or Form 4506T-EZ (both available on IRS.gov).

Using online tools to help prepare your return.

Go to IRS.gov/Tools for the following.

The Earned Income Tax Credit Assistant (IRS.gov/EIC) determines if you’re eligible for the EIC.

The Online EIN Application (IRS.gov/EIN) helps you get an employer identification number.

The IRS Withholding Calculator (IRS.gov/W4App) estimates the amount you should have withheld from your paycheck for federal income tax purposes.

The First Time Homebuyer Credit Account Look-up (IRS.gov/HomeBuyer) tool provides information on your repayments and account balance.

The Sales Tax Deduction Calculator (IRS.gov/SalesTax) figures the amount you can claim if you itemize deductions on Schedule﻿ ﻿A (Form 1040), choose not to claim state and local income taxes, and you didn’t save your receipts showing the sales tax you paid.

Resolving tax-related identity theft issues.

The IRS doesn’t initiate contact with taxpayers by email or telephone to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

Go to IRS.gov/IDProtection for information and videos.

If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, visit IRS.gov/ID to learn what steps you should take.

Checking on the status of your refund.

Go to IRS.gov/Refunds.

Due to changes in the law, the IRS can’t issue refunds before mid-February 2018, for returns that properly claimed the EIC or the ACTC. This applies to the entire refund, not just the portion associated with these credits.

Download the official IRS2Go app to your mobile device to check your refund status.

Call the automated refund hotline at 1﻿-﻿800﻿-﻿829﻿-﻿1954.

Making a tax payment.

The IRS uses the latest encryption technology to ensure your electronic payments are safe and secure. You can make electronic payments online, by phone, and from a mobile device using the IRS2Go app. Paying electronically is quick, easy, and faster than mailing in a check or money order. Go to IRS.gov/Payments to make a payment using any of the following options.

IRS Direct Pay: Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you.

Debit or credit card: Choose an approved payment processor to pay online, by phone, and by mobile device.

Electronic Funds Withdrawal: Offered only when filing your federal taxes using tax preparation software or through a tax professional.

Electronic Federal Tax Payment System: Best option for businesses. Enrollment is required.

Check or money order: Mail your payment to the address listed on the notice or instructions.

Cash: You may be able to pay your taxes with cash at a participating retail store.

What if I can’t pay now?

Go to IRS.gov/Payments for more information about your options.

Apply for an online payment agreement (IRS.gov/OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

Use the Offer in Compromise Pre-Qualifier (IRS.gov/OIC) to see if you can settle your tax debt for less than the full amount you owe.

Checking the status of an amended return.

Go to IRS.gov/WMAR to track the status of Form 1040X amended returns. Please note that it can take up to 3 weeks from the date you mailed your amended return for it to show up in our system and processing it can take up to 16 weeks.

Understanding an IRS notice or letter.

Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

Contacting your local IRS office.

Keep in mind, many questions can be answered on IRS.gov without visiting an IRS Tax Assistance Center (TAC). Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, IRS TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC, check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

Watching IRS videos.

The IRS Video portal (IRSvideos.gov) contains video and audio presentations for individuals, small businesses, and tax professionals.

Getting tax information in other languages.

For taxpayers whose native language isn’t English, we have the following resources available. Taxpayers can find information on IRS.gov in the following languages.

Spanish (IRS.gov/Spanish).

Chinese (IRS.gov/Chinese).

Vietnamese (IRS.gov/Vietnamese).

Korean (IRS.gov/Korean).

Russian (IRS.gov/Russian).

The IRS TACs provide over-the-phone interpreter service in over 170 languages, and the service is available free to taxpayers.

The Taxpayer Advocate Service Is Here To Help You

What is the Taxpayer Advocate Service?

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights.

What Can the Taxpayer Advocate Service Do For You?

We can help you resolve problems that you can’t resolve with the IRS. And our service is free. If you qualify for our assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:

Your problem is causing financial difficulty for you, your family, or your business,

You face (or your business is facing) an immediate threat of adverse action, or

You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.

How Can You Reach Us?

We have offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is in your local directory and at TaxpayerAdvocate.IRS.gov/Contact-Us. You can also call us at 1﻿-﻿877﻿-﻿777﻿-﻿4778.

How Can You Learn About Your Taxpayer Rights?

The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Our Tax Toolkit at TaxpayerAdvocate.IRS.gov can help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.

How Else Does the Taxpayer Advocate Service Help Taxpayers?

TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to us at IRS.gov/SAMS.

Low Income Taxpayer Clinics

Low Income Taxpayer Clinics (LITCs) are independent from the IRS. LITCs represent individuals whose income is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. To find a clinic near you, visit TaxpayerAdvocate.IRS.gov/LITCmap or see IRS Publication 4134, Low Income Taxpayer Clinic List.

Tax Publications for Individual Taxpayers

General Guides

1

Your Rights as a Taxpayer

17

Your Federal Income Tax For Individuals

334

Tax Guide for Small Business (For Individuals Who Use Schedule﻿ ﻿C or C-EZ)

509

Tax Calendars

910

IRS Guide to Free Tax Services

Specialized Publications

3

Armed Forces’ Tax Guide

54

Tax Guide for U.S. Citizens and Resident Aliens Abroad

225

Farmer’s Tax Guide

463

Travel, Entertainment, Gift, and Car Expenses

501

Exemptions, Standard Deduction, and Filing Information

502

Medical and Dental Expenses (Including the Health Coverage Tax Credit)

503

Child and Dependent Care Expenses

504

Divorced or Separated Individuals

505

Tax Withholding and Estimated Tax

514

Foreign Tax Credit for Individuals

516

U.S. Government Civilian Employees Stationed Abroad

517

Social Security and Other Information for Members of the Clergy and Religious Workers

519

U.S. Tax Guide for Aliens

521

Moving Expenses

523

Selling Your Home

524

Credit for the Elderly or the Disabled

525

Taxable and Nontaxable Income

526

Charitable Contributions

527

Residential Rental Property (Including Rental of Vacation Homes)

529

Miscellaneous Deductions

530

Tax Information for Homeowners

531

Reporting Tip Income

535

Business Expenses

536

Net Operating Losses (NOLs) for Individuals, Estates, and Trusts

537

Installment Sales

541

Partnerships

544

Sales and Other Dispositions of Assets

547

Casualties, Disasters, and Thefts

550

Investment Income and Expenses (Including Capital Gains and Losses)

551

Basis of Assets

554

Tax Guide for Seniors

555

Community Property

556

Examination of Returns, Appeal Rights, and Claims for Refund

559

Survivors, Executors, and Administrators

561

Determining the Value of Donated Property

570

Tax Guide for Individuals With Income From U.S. Possessions

571

Tax-Sheltered Annuity Plans (403(b) Plans) for Employees of Public Schools and Certain Tax-Exempt Organizations

575

Pension and Annuity Income

584

Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property)

587

Business Use of Your Home (Including Use by Daycare Providers)

590-A

Contributions to Individual Retirement Arrangements (IRAs)

590-B

Distributions from Individual Retirement Arrangements (IRAs)

594

The IRS Collection Process

596

Earned Income Credit (EIC)

721

Tax Guide to U.S. Civil Service Retirement Benefits

901

U.S. Tax Treaties

907

Tax Highlights for Persons With Disabilities

908

Bankruptcy Tax Guide

915

Social Security and Equivalent Railroad Retirement Benefits

925

Passive Activity and At-Risk Rules

926

Household Employer’s Tax Guide

929

Tax Rules for Children and Dependents

936

Home Mortgage Interest Deduction

946

How To Depreciate Property

947

Practice Before the IRS and Power of Attorney

950

Introduction to Estate and Gift Taxes

969

Health Savings Accounts and Other Tax-Favored Health Plans

970

Tax Benefits for Education

971

Innocent Spouse Relief

972

Child Tax Credit

976

Disaster Relief

1542

Per Diem Rates (For Travel Within the Continental United States)

1544

Reporting Cash Payments of Over $10,000 (Received in a Trade or Business)

1546

Taxpayer Advocate Service – Your Voice at the IRS

Spanish Language Publications

1SP

Derechos del Contribuyente

17(SP)

El Impuesto Federal sobre los Ingresos Para Personas Físicas

547(SP)

Hechos Fortuitos, Desastres y Robos

584(SP)

Registro de Pérdidas por Hechos Fortuitos (Imprevistos), Desastres y Robos (Propiedad de Uso Personal)

594SP

El Proceso de Cobro del IRS

596SP

Crédito por Ingreso del Trabajo (EIC)

850(EN/SP)

English-Spanish Glossary of Tax Words and Phrases Used in Publications Issued by the Internal Revenue Service

1544(SP)

Informe de Pagos en Efectivo en Exceso de $10,000 (Recibidos en una Ocupación o Negocio)

Commonly Used Tax Forms

Form Number and Title

1040

U.S. Individual Income Tax Return

 Sch A

 Itemized Deductions

 Sch B

 Interest and Ordinary Dividends

 Sch C

 Profit or Loss From Business

 Sch C-EZ

 Net Profit From Business

 Sch D

 Capital Gains and Losses

 Sch E

 Supplemental Income and Loss

 Sch EIC

 Earned Income Credit

 Sch F

 Profit or Loss From Farming

 Sch H

 Household Employment Taxes

 Sch J

 Income Averaging for Farmers and
  Fishermen

 Sch R

 Credit for the Elderly or
  the Disabled

 Sch SE

 Self-Employment Tax

1040A 

U.S. Individual Income Tax Return

 Sch B

Interest and Ordinary Dividends

1040EZ 

Income Tax Return for Single and Joint Filers With No Dependents

1040-ES 

Estimated Tax for Individuals

1040X 

Amended U.S. Individual Income Tax Return

2106 

Employee Business Expenses

2106-EZ 

Unreimbursed Employee Business Expenses

2210 

Underpayment of Estimated Tax by Individuals, Estates, and Trusts

2441 

Child and Dependent Care Expenses

2848 

Power of Attorney and Declaration of Representative

2848(SP) 

Poder Legal y Declaración del Representante

3903 

Moving Expenses

4562 

Depreciation and Amortization

4868 

Application for Automatic Extension of Time To File U.S. Individual Income Tax Return

4868(SP) 

Solicitud de Prórroga Automática para Presentar la Declaración del Impuesto sobre el Ingreso Personal de los Estados Unidos

4952 

Investment Interest Expense Deduction

5329 

Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

6251 

Alternative Minimum Tax—Individuals

8283 

Noncash Charitable Contributions

8582 

Passive Activity Loss Limitations

8606 

Nondeductible IRAs

8812 

Child Tax Credit

8822 

Change of Address (For Individual, Gift, Estate, or Generation-Skipping Transfer Tax Returns)

8829 

Expenses for Business Use of Your Home

8863 

Education Credits (American Opportunity and Lifetime Learning Credits)

8949

Sales and Other Dispositions of Capital Assets

9465 

Installment Agreement Request

9465(SP) 

Solicitud para un Plan de Pagos a Plazos