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Publication 547

and Thefts



Future developments.(p1)
For the latest information about developments related to Publication 547, such as legislation enacted after it was published, go to
Photographs of missing children.(p1)
The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 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.


This publication explains the tax treatment of casualties, thefts, and losses on deposits. A casualty occurs when your property is damaged as a result of a disaster such as a storm, fire, car accident, or similar event. A theft occurs when someone steals your property. A loss on deposits occurs when your financial institution becomes insolvent or bankrupt.
This publication discusses the following topics.

Forms to file.(p2)

Generally, when you have a casualty or theft, you have to file Form 4684. You may also have to file one or more of the following forms. For details on which form to use, see How To Report Gains and Losses, later.


For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Dispositions of Assets.

Workbooks for casualties and thefts.(p2)

Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property), is available to help you make a list of your stolen or damaged personal-use property and figure your loss. It includes schedules to help you figure the loss on your home and its contents, and your motor vehicles.
Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook, is available to help you make a list of your stolen or damaged business or income-producing property and figure your loss.

Comments and suggestions.(p2)

We welcome your comments about this publication and your suggestions for future editions.
You can send us comments from Click on "More Information" and then on "Give us feedback."
Or you can write to:

Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.
Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products.
Ordering forms and publications.(p2)
Visit to download forms and publications. Otherwise, you can go to to order forms or call 1-800-829-3676 to order current and prior-year forms and instructions. Your order should arrive within 10 business days.
Tax questions.(p2)
If you have a tax question, check the information available on or call 1-800-829-1040. We cannot answer tax questions sent to the above address.


Useful items

You may want to see:

 523 Selling Your Home
 525 Taxable and Nontaxable Income
 550 Investment Income and Expenses
 551 Basis of Assets
 584 Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property)
 584-B Business Casualty, Disaster, and
Theft Loss Workbook

Form (and Instructions)
 Schedule A (Form 1040): Itemized Deductions
 Form 1040NR, Schedule A: Itemized Deductions (for nonresident aliens)
 Schedule D (Form 1040): Capital Gains and Losses
 4684: Casualties and Thefts
 4797: Sales of Business Property
See How To Get Tax Help near the end of this publication for information about getting publications and forms.


A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.
Generally, casualty losses are deductible during the taxable year that the loss occurred. See Table 3, later.

Deductible losses.(p2)

Deductible casualty losses can result from a number of different causes, including the following.

Nondeductible losses.(p2)

A casualty loss is not deductible if the damage or destruction is caused by the following.
Family pet.(p2)
Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed earlier under Casualty are met.


Your antique oriental rug was damaged by your new puppy before it was housebroken. Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss.
Progressive deterioration.(p2)
Loss of property due to progressive deterioration is not deductible as a casualty loss. This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. The following are examples of damage due to progressive deterioration.

Special Procedure for Damage From Corrosive Drywall(p2)

Under a special procedure, you can deduct the amounts you paid to repair damage to your home and household appliances due to corrosive drywall. Under this procedure, you treat the amounts paid for repairs as a casualty loss in the year of payment. For example, amounts you paid for repairs in 2014 are deductible on your 2014 tax return and amounts you paid for repairs in 2013 are deductible on your 2013 tax return.
Note.If you paid for any repairs before 2014 and you choose to follow this special procedure, you can amend your return for the earlier year by filing Form 1040X, Amended U.S. Individual Income Tax Return, and attaching a completed Form 4684 for the appropriate year. Form 4684 for the appropriate year can be found at Generally, Form 1040X must be filed within 3 years after the date the original return was filed or within 2 years after the date the tax was paid, whichever is later.

Corrosive drywall.(p3)

For purposes of this special procedure, "corrosive drywall" means drywall that is identified as problem drywall under the two-step identification method published by the Consumer Product Safety Commission (CPSC) and the Department of Housing and Urban Development (HUD) in their interim guidance dated January 28, 2010, as revised by the CPSC and HUD. The revised identification guidance and remediation guidelines are available at

Special instructions for completing Form 4684.(p3)

If you choose to follow this special procedure, complete Form 4684, Section A, according to the instructions below. The IRS will not challenge your treatment of damage resulting from corrosive drywall as a casualty loss if you determine and report the loss as explained below.
Top margin of Form 4684.(p3)
Enter "Revenue Procedure 2010-36."
Line 1.(p3)
Enter the information required by the line 1 instructions.
Line 2.(p3)
Skip this line.
Line 3.(p3)
Enter the amount of insurance or other reimbursements you received (including through litigation). If none, enter -0-.
Lines 4–7.(p3)
Skip these lines.
Line 8.(p3)
Enter the amount you paid to repair the damage to your home and household appliances due to corrosive drywall. Enter only the amounts you paid to restore your home to the condition existing immediately before the damage. Do not enter any amounts you paid for improvements or additions that increased the value of your home above its pre-loss value. If you replaced a household appliance instead of repairing it, enter the lesser of:
Line 9.(p3)
If line 8 is more than line 3, do one of the following.
  1. If you have a pending claim for reimbursement (or you intend to pursue reimbursement), enter 75% of the difference between lines 3 and 8.
  2. If item (1) does not apply to you, enter the full amount of the difference between lines 3 and 8.
If line 8 is less than or equal to line 3, you cannot claim a casualty loss deduction using this special procedure.
If you have a pending claim for reimbursement (or you intend to pursue reimbursement), you may have income or an additional deduction in a later tax year depending on the actual amount of reimbursement received. See Reimbursement Received After Deducting Loss, later.
Lines 10–18.(p3)
Complete these lines according to the Instructions for Form 4684.

Choosing not to follow this special procedure.(p3)

If you choose not to follow this special procedure, you are subject to all of the provisions that apply to the deductibility of casualty losses, and you must complete lines 1–9 according to the Instructions for Form 4684. This means, for example, that you must establish that the damage, destruction, or loss of property resulted from an identifiable event as defined earlier under Casualty. Furthermore, you must have proof that shows the following.