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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28090
Experience:  Taxes, Immigration, Labor Relations
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Lev......After filling out and submitting IRS Form 4684 with

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Lev......After filling out and submitting IRS Form 4684 with our 2011 Income Tax Return, how much of our $7,593.00 can we expect to receive? Also, will we increase our chances of the IRS conducting an audit of our return by filing the extra Form 4684? Thanks....Regards.....Paul

LEV :

Hi and welcome to Just Answer!
To claim that deduction – you should itemize on the schedule A - if you do not itemize - there is no deduction.
In additional - you must subtract $500 from each casualty, and subtract 10% of your adjusted gross income from that total to calculate your allowable casualty losses for the year – so your actual deduction will be less than the full amount of your loss.
As a result - your taxable income will be reduced by $7,593 - $500 - 10% of your AGI.
Your actual tax saving will be based on your tax bracket - this if you are in 25% marginal tax bracket - that will be your saving.
Yes - deducting Casualties, Disasters, and Thefts losses will increase your chances to be audited. But we never know if it will trigger the actual audit or not.

Customer:

Lev.......Thank you, XXXXX XXXXX It always pays to go with a pro!!........Paul

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