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Generating Form 4684 casualty or theft loss for an individual return in ProConnect Tax

by Intuit•1• Updated 3 months ago

This article will help understand how to generate Form 4684, Casualties and Thefts, and how to report a casualty or theft, in Intuit ProConnect.

Follow these steps to enter a casualty or theft on the Depreciation screen:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Deductions and choose Depreciation.
  3. Click the blue Details button to expand the input screen.
  4. From the top of the screen, select Disposition.
  5. Locate the Casualty or Theft (4684) section.
  6. Enter the following fields:
    • Description (fire, robbery, etc.)
    • Blank=trade or business, 1=income producing
    • Fair market value before casualty or theft
    • Fair market value after casualty or theft
    • Insurance or other reimbursement
    • For multiple personal casualty events, enter additional casualty number (ie. 2=2nd, 3=3rd)
      • Leave this field blank for the first casualty.
      • ProConnect Tax uses this entry to calculate Form 4684, lines 1-12 for each casualty.
  7. This will flow to Form 4684 Section B - Business and Income-Producing Property

Follow these steps to enter a casualty or theft on the Dispositions screen:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
  3. Select Schedule D/4797/etc.
  4. Click the blue Details button to expand the input screen.
  5. Under the Dispositions (Schedule D, 4797, etc.) section, enter the following fields:
    • Description of property
    • Date acquired (negative date=various)
    • Date sold (negative date=various)
      • This will be the date the casualty or theft occurred on.
    • Cost or other basis (do not reduce by depreciation)
  6. From the top of the screen, select 4684, 6781, 8824, 4255.
  7. Locate the Casualties and Thefts (4684) section.
  8. Enter the following fields:
    • Description (fire, robbery, etc.)
    • 1=personal, 2=business, 3=income, 4=employee
      • This controls which section of the Form 4684 that the casualty or theft will flow to
    • Fair market value before casualty or theft
    • Fair market value after casualty or theft
    • Insurance or other reimbursement
    • For multiple personal casualty events, enter additional casualty number (ie. 2=2nd, 3=3rd)
      • Leave this field blank for the first casualty.
      • ProConnect Tax uses this entry to calculate Form 4684, lines 1–12 for each casualty.
  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Dispositions (Sch D, 4797, etc.).
  3. Select Schedule D/4797/etc.
  4. Click the blue Details button to expand the input screen.
  5. Under the Dispositions (Schedule D, 4797, etc.) section, enter the following fields:
    • Description of property
    • Date acquired (negative date=various)
    • Date sold (negative date=various)
      • This will be the date the casualty or theft occurred on.
    • Cost or other basis (do not reduce by depreciation)
  6. From the top of the screen, select 4684, 6781, 8824, 4255.
  7. Locate the Casualties and Thefts (4684) section.
  8. Enter the following fields:
    • Description (fire, robbery, etc.)
    • 1=personal, 2=business, 3=income, 4=employee
    • Fair market value before casualty or theft
    • Fair market value after casualty or theft
    • Insurance or other reimbursement
    • For multiple personal casualty events, enter additional casualty number (ie. 2=2nd, 3=3rd)
      • Leave this field blank for the first casualty.
      • ProConnect Tax uses this entry to calculate Form 4684, lines 1–12 for each casualty.
  9. From the left of the screen, select Deductions and choose Business Use of Home (8829).
  10. Scroll down to the Indirect Expenses or Direct Expenses section.
  11. Enter the information in Casualty losses (also enter on Disposition screen).

  • In passthrough entities, if the asset had prior Section 179 expense, the program won't generate Form 4684 the loss will be reported on the Schedule K-1 Supplemental Information.
  • If the asset is sold after receiving an insurance reimbursement, a basis reduction may be required to properly reflect the gain. That adjustment will appear on line 26 of the Form 4684 and on line 23 of the Form 4797 (p.2).
  • If the reimbursement received is greater than the adjusted basis of the asset, a gain will be reported on Form 4797, page 2, which will then flow to page 1, line 13.

There's no way to automatically defer the gain. However, you can enter an override for the total gain to not report on the return.

  1. Go to the Input Return tab.
  2. From the left of the screen, select Deductions and choose Depreciation.
  3. Scroll down to the Disposition Overrides section.
  4. Enter a -1 in the Total gain (loss) [O] field.
  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
  3. Scroll down to the Overrides section.
  4. Enter a -1 in Total gain (loss) [O] field.

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