Carry Back Disaster Loss to 2017 - Spidell

Carry Back Disaster Loss to 2017

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Message Board Carry Back Disaster Loss to 2017

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    • #183942

      I was hoping to see how to complete the 4684 and how to carryback the loss to 2017 (amend 2017 then file 2018?) using Proseries.
      FYI. Bought home in 2005 for 430k. Not sure what capital improvements were made pre fire.
      Estimated Market value pre fire is 500k.
      Had about 20k in repairs above what insurance paid.
      Trying to sell now, after repairs, for 418 but it will not sell.

    • #183957
      Lynn Freer

      Amend the 2017 and report the loss then. If insurance will reimburse there won’t be a loss at all so you need to see what the insurance will reimburse. What is estimated market value now? Then take that and subtract potential insurance reimbursement. It’s possible the loss will only be the amount of the deductible. If you claim more than the loss, you declare that as income when the insurance is finalized.

    • #184104

      Amend the 2017 ad complete the 4684 and THEN pull the file forward and use the loss carried over to complete the 2018 return?  I thought I had to complete 2018 and then carry it back.

      In what year so I elect and complete the IRC 165Ii)?

      Lastly, does CA also offer the Disaster loss and if so, how do I do that?

    • #184116
      Sandy Weiner

      You would amend the 2017 and claim the loss in that year and then carry it forward. See the instructions below from page 2 of the Form 4684 instructions. CA also allows a disaster loss. See FTB Pub. 1034 at:

      We also provide a Tax Guide that provides detailed information on disaster losses and how to claim them, how to calculate the gain or loss (including interplay with IRC Sec. 121), treatment of insurance or other reimbursements, and involuntary conversions, etc.

      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
      To make this election for a loss in disaster
      year 2018, complete Part 1 of section D on your
      2017 Form 4684 and attach it to your 2017
      original or amended return that claims the
      disaster loss. See Section D—Election To
      Deduct Federally Declared Disaster Loss in
      Preceding Tax Year, later.
      You must make an election to deduct a 2018
      disaster loss on your 2017 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 2018 disaster loss on your
      2017 tax return is October 15, 2019.

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