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Entering a casualty or theft for Form 4684 in ProSeries

by Intuit Updated 1 week ago

This article will assist you with entering a casualty or theft for Form 4684 in ProSeries.

To enter a casualty or theft, open the Casualty and Theft Worksheet and enter the appropriate information as needed. If you need to report a personal and business casualty or theft, you'll need to enter them on separate Casualty and Theft Worksheets.

If the item has prior depreciation, you'll need to enter it on the Enterable 4797, and fill out the Casualty/Theft or Installment Sale Smart Worksheet.

Follow these steps to enter a casualty loss or theft:

  1. Open the client return.
  2. Press F6 on your keyboard to bring up the Open Forms menu.
  3. Type in:
    • 4684WKS for an Individual return.
    • 4684 or 4684W for a business return.
  4. Press Enter.

You may also use the Where Do I Enter? feature in the 1040 module, search "casualty," and double-click the results. This will open the Form 4684 Worksheet. Personal use property will be reported on page 1 of Form 4684, and business and income-producing property will be reported on page 2 of Form 4684.

For tax years 2018 through 2025, personal casualty losses are nondeductible unless attributable to a federally declared disaster. So, a taxpayer who suffers a personal casualty loss from a disaster declared by the president under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act will be able to claim a personal casualty loss as an itemized deduction, subject to the $100-per-casualty and 10%-of-AGI limitations.

For a taxpayer that has personal casualty gains, their personal casualty losses can still be offset against those gains—even if the losses aren't incurred in a federally declared disaster.

Refer to the IRS Instructions for Form 4684 for more information.

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