Use Form 4684 to report a gain or a deductible loss from a casualty or theft. If you have more than one casualty or theft, use a separate Form 4684 to determine your gain or loss for each event. Combine the gains and losses on one Form 4684. Follow the form instructions as to which lines to fill out.

If you have a:	Report it on:
Gain	Schedule D (Form 1040)
Loss	Schedule A (Form 1040)

Adjustments to basis. If you have a casualty or theft loss, you must reduce your adjusted basis in the property by any deductible loss and any insurance or other reimbursements. Amounts you spend to restore your property after a casualty increase your adjusted basis. See Adjusted Basis in chapter 14 for more information.

Net operating loss. If your casualty or theft loss deduction is more than your income, you may have a net operating loss (NOL). You can use an NOL to lower your taxes in an earlier year, allowing you to get a refund for taxes you have already paid. Or, you can use it to lower your taxes in a later year. You do not have to be in business to have an NOL from a casualty or theft loss. For more information, see Publication 536, Net Operating Losses.

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