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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11180
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hello Regarding Nol...had a natural disaster & theft in 2012

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Hello
Regarding Nol...had a natural disaster & theft in 2012 and plan to file it for the first time. I read in Irs site to enter the amount on line 21 as a negative amount on 1040. I thought the amount went on Line 40 of 1040.

Lane :

Hi, I think you have the Scuedule A confused with the 1040 itself

Lane :

Here's what the instructions for schedule A say re: casualty and theft losses:

Lane :


Line 20




Complete and attach Form 4684 to figure the amount of your loss to enter on line 20.


You may be able to deduct part or all of each loss caused by theft, vandalism, fire, storm, or similar causes; car, boat, and other accidents; and corrosive drywall. You may also be able to deduct money you had in a financial institution but lost because of the insolvency or bankruptcy of the institution.


You can deduct personal casualty or theft losses only to the extent that:




  1. The amount of each separate casualty or theft loss is more than $100, and




  2. The total amount of all losses during the year (reduced by the $100 limit discussed in (1) above) is more than 10% of the amount on Form 1040, line 38.



Lane :

Make sense?

Lane :

I still don't see you coming into the chat session, so I'll move us to the "Q&A" mode. … Maybe that will help … (We can still continue a dialogue there, just not in real-time chat, as we can here)

Lane :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

Lane :

But again, let me know if you need anything else at all on this ...


Lane

Lane and 2 other Tax Specialists are ready to help you

Hi Karen,

... just checking back in HERE, as I never saw you come into the chat.

Please let me know if you have any other questions at all.

Lane

Thanks so much for that Karen!

Lane