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Form 4684: How to Claim a Casualty and Theft Loss Deduction

The article from MSN Money discusses how to claim a casualty and theft loss deduction using IRS Form 4684. It explains that this form is used to report losses from events like natural disasters, fires, floods, accidents, or thefts, which can be deducted from your taxes if they exceed 10% of your adjusted gross income (AGI) after subtracting $100 per event. The article outlines the steps to fill out Form 4684, detailing how to calculate the loss, which involves determining the decrease in fair market value due to the event, and subtracting any insurance or other reimbursements received. It also covers special considerations for personal-use property versus business or income-producing property, and provides guidance on when and how to file this form, emphasizing the importance of keeping thorough records and documentation of the losses. Additionally, it mentions that while these deductions can provide significant tax relief, they are subject to certain limitations and require careful adherence to IRS rules.

Read the Full SmartAsset Article at:
[ https://www.msn.com/en-us/money/personalfinance/form-4684-how-to-claim-a-casualty-and-theft-loss-deduction/ar-AA1Bg77L ]