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

This topic contains 3 replies, has 3 voices, and was last updated by Sandy Weiner 1 week, 6 days ago.

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  • #183942
    Anonymous

    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.
    Thoughts?

  • #183957
    Lynn Freer
    Participant

    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
    Anonymous

    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
    Participant

    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: https://www.ftb.ca.gov/forms/misc/1034.pdf

    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 FEMA.gov/Disasters.
    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.