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

This article will show you how to generate Form 4684, Casualties and Thefts, and how to report a casualty or theft.

To enter a casualty or theft on Screen 22, Depreciation:

1. Go to Screen 22, Depreciation.
2. Select the Casualty or Theft (4684) section from the lower left sections menu.
3. Enter the Description (fire, robbery, etc.).
4. Enter 1 in Blank=trade or business, 1=income producing (if the asset was an income-producing property).
5. Enter the Fair market value before the casualty or theft.
6. Enter the Fair market value after the casualty or theft.
7. Enter any Insurance or other reimbursement.
8. Enter a number in, Multiple casualties (if applicable).
   • Leave this field blank for the first casualty. Enter 2 for the second casualty, 3 for the third casualty, and so on. Lacerte uses this entry to calculate Form 4684, lines 1–12 for each casualty.

To enter a casualty or theft on Screen 17, Dispositions:

1. Go to  Screen 17, Dispositions.
2. Select the Add button from the middle left panel.
3. Enter the applicable information for the property:
   1. Description of property
   2. Date acquired (negative date=various)
   3. Date sold (negative date=various)
      • This will be the date the casualty or theft occurred on.
   4. Cost or basis (do not reduce by depreciation)
4. Select the Casualties and Thefts (4684) section from the lower left sections menu.
5. Enter the Description (fire, robbery, etc.).
6. Enter a 1, 2, 3, or 4 in 1=personal, 2=business, 3=income, 4=employee.
7. Select the relevant option from the dropdown in Disaster loss (CTRL+T).
8. Select the relevant option from the dropdown in FEMA Disaster Declaration Code.
9. Enter the Fair market value before casualty or theft.
10. Enter the Fair market value after casualty or theft.
11. Enter any Insurance or other reimbursement.
12. Enter a number in the field For multiple personal casualty events, enter additional casualty number (if applicable).
    • Leave this field blank for the first casualty. Enter 2 for the second casualty, 3 for the third casualty, and so on. Lacerte uses this entry to calculate Form 4684, lines 1–12 for each casualty.

To enter a home office casualty loss on Screen 17, Dispositions

1. Go to Screen 17, Dispositions.
2. Select the Add button from the left menu.
3. Enter the applicable information for the property:
   1. Description of property
   2. Date acquired (negative date=various)
   3. Date sold (negative date=various)
      • This will be the date the casualty or theft occurred on.
   4. Cost or basis (do not reduce by depreciation)
4. Select the Casualties and Thefts (4684) section from the lower left sections menu.
5. Enter the Description (fire, robbery, etc.).
6. Enter a 1, 2, 3, or 4 in 1=personal, 2=business, 3=income, 4=employee.
7. Enter the Fair market value before casualty or theft.
8. Enter the Fair market value after casualty or theft.
9. Enter any Insurance or other reimbursement.
10. Go to Screen 29, Business Use of Home (8829).
11. Scroll down to the Indirect Expenses or Direct Expenses section.
12. Enter the information in the field Casualty losses (also enter on screen: 17.1).

Related topics

• How to set up up a casualty or theft for a natural disaster loss in a preceding tax year in Lacerte
• Common questions about casualty and loss amounts reduced on Schedule A
• Reporting casualty loss with replacement asset in Lacerte