Publication 547 2024 - 2025

IRS Publication 547, Casualties, Disasters, and Thefts, is a comprehensive guide provided by the Internal Revenue Service (IRS) that outlines the federal tax treatment of losses incurred from casualties, disasters, or thefts. The publication is designed to help taxpayers determine the tax implications of such losses and how to report them on their tax returns.

Publication 547 covers a range of topics, including the definition of a casualty, disaster, or theft; the types of losses that may be deducted on a tax return; the amount of the loss that may be deducted; and the procedure for claiming a casualty loss on a tax return. The publication also provides information on calculating the loss amount, determining the tax year in which the loss occurred, and reporting the loss on the appropriate tax forms. The sections in Publication 547 are organized into several categories, including Casualty and Theft Losses, Disaster Losses, Abandonments, Condemnations, and Sales or Exchanges of Property. Each section provides detailed information on the specific type of loss, the requirements for claiming the loss on a tax return, and the tax implications of the loss.

Publication 547 Sections

Publication 547 Sections

IRS Publication 547 is divided into sections and subsections, and each section and subsection covers a specific topic related to casualties, disasters, and thefts. Section 1 is the introduction section of the publication, which provides an overview of what the publication covers and who it applies to. It also provides information on how to use the publication and how to get more help from the IRS if needed.

  • Section 2: Casualty Losses: This section provides information on how to calculate the amount of loss incurred due to a casualty event, such as a fire or storm, and how to report the loss on your tax return.
  • Section 3: Disaster Losses: This section covers the tax treatment of losses resulting from a presidentially declared disaster, such as a hurricane or flood. It explains the special rules that apply to these losses, including how to deduct losses in the year they occur or the prior year and how to claim a refund for taxes paid in the prior year.
  • Section 4: Theft Losses: This section explains how to determine the amount of a loss resulting from theft and how to report the loss on your tax return.
  • Section 5: How to Deduct Losses: This section provides information on how to deduct casualty, disaster, and theft losses on your tax return, including the types of losses that are deductible, the limitations on the amount you can deduct, and how to report the losses on your tax return.
  • Section 6: When to Deduct Losses: This section explains when you can deduct losses, including the timing of the deduction, the limitations on the amount you can deduct, and how to carry forward losses to future years.
  • Section 7: Other Rules: This section covers other rules that apply to casualty, disaster, and theft losses, such as the rules for insurance reimbursements, the requirements for substantiating losses, and the rules for claiming losses on property used in a trade or business.

Publication 547 is a valuable resource for taxpayers who have suffered losses from casualties, disasters, or thefts and need guidance on handling the tax implications of these events.