Form 4684 — Casualties and Thefts
Form 4684 is used to report gains and losses from casualties and thefts. After TCJA (2018–2025), personal casualty losses are deductible only if they arise from a federally declared disaster. Under OBBBA, this restriction continues through 2033. For tax professionals, Form 4684 is relevant for clients in federally declared disaster areas — and for business casualty losses, which remain fully deductible.
Key Rules and Authority
| Rule | Detail |
|---|---|
| Personal Casualty | Federally declared disaster only (through 2033) |
| Per-Event Floor | $100 |
| AGI Floor | 10% of AGI |
| Business Casualty | Fully deductible — no disaster requirement |
| Insurance Reimbursement | Reduces deductible loss |
| Gain from Casualty | Taxable if insurance exceeds basis |
Personal vs. Business Casualty Losses
The tax treatment of casualty losses depends on whether the property is personal or business property. For personal property (home, personal vehicle, personal belongings), casualty losses are only deductible if the loss arises from a federally declared disaster, and the deductible amount is reduced by $100 per event and 10% of AGI. For business property (business equipment, business vehicles, rental property), casualty losses are fully deductible as ordinary losses — there is no federal disaster requirement, no $100 floor, and no AGI floor. Business casualty losses are reported in Section B of Form 4684 and flow to Form 4797.
Frequently Asked Questions
Master Casualty Loss Planning for Your Clients
Form 4684 is one of 100+ IRS forms covered in the Tax Intelligence Engine. Access the full library free for tax professionals.
Join the Marketplace — Free for Tax ProsRelated Resources
Explore our tax professional directory and deduction guides.