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How to set up up a casualty or theft for a natural disaster loss in a preceding tax year in Lacerte

by Lacerte Tax 2023 Updated 11 months ago

Follow these steps to set up the loss:

  1. Go to Screen 46, Elections.
    1. In the lower left sections panel, select the Election to Deduct Disaster Loss in Preceding Tax Year subsection.
    2. Input the information related to the loss.
  2. Go to Screen 17.1, Dispositions (Schedule D, 4797, etc).
  3. Enter the description, date acquired, date of sale (loss), and basis amount.
  4. In the lower left sections panel, select the Casualties and Thefts (4684) subsection and enter the following information:
    • Description (fire, robbery, etc.)
    • Enter the appropriate number in 1=personal, 2=business, 3=income, 4=employee.
      • If you selected 1 for personal, the loss will show on Schedule A. If you selected 2 for business, the loss will show on Form 4684.
    • Select the applicable disaster in Disaster Loss (Ctrl + T).
    • Fair market value before casualty or theft
    • FMV after casualty or theft (or leave blank if no value), or FMV determined under safe harbor method
    • Insurance or other reimbursement
    • Multiple casualties (number each casualty entered in this screen starting with 1)
Lacerte Tax

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