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Casualty and Theft Losses and Form 4684: Claiming Losses from Scams, Casualties, and Disasters

Deducting California Wildfire, Hurricanes Helene and Milton, and Ponzi Scheme Losses

Note: CLE credit is not offered on this program

A live 110-minute CPE webinar with interactive Q&A

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This program is included with the Strafford CPE+ Pass. Click for more information.
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Wednesday, May 7, 2025

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

or call 1-800-926-7926
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This course will cover deducting casualty losses inside and outside of federally declared disaster areas. The IRS recently issued CCA 202511015 that provided guidance on when a theft loss can be claimed for victims of scams. This CCA may be different than positions we have taken on tax returns in previous years. We will then review recent tax legislation on Disaster Relief.

Description

Although the Tax Act of 2017 eliminated personal casualty loss deductions for the years 2018-2025, business casualty losses remain deductible, and personal losses within federally declared disaster areas are deductible. The Federal Disaster Relief Act of 2023 provides relief to individual taxpayers in federally declared disaster areas. The Act allows these taxpayers to deduct qualifying personal casualty losses even when they do not itemize. It also increases the floor to $500 for deductible losses.

Tax practitioners continue to struggle with the calculations of the deductible portion of losses from these life-altering events. Insurance proceeds, settlements, and other relief received rightly alter the deductibility of losses. Calculating depreciation and the basis of the replacement property and preparing Form 4684 provide additional challenges as well.

Listen as Lawrence K.Y. Pon, CPA/PFS, CFP, EA, USTCP, AEP at Pon & Associates, explains eligibility for this deduction, calculating deductible losses, and timing the deduction of these benefits. Tax advisers need to recognize disaster relief available for taxpayers suffering from major disasters and grasp existing rules for the deductibility of these losses to obtain maximum tax savings for individuals and businesses.

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Outline

  1. Allowances of Theft Losses for Victims of Scams
  2. Disaster Relief
  3. Federal Disaster Relief Act
  4. Casualty losses
    1. Personal
    2. Business
  5. Timing the loss deduction
  6. Calculating the loss and deduction
  7. Section 1033 involuntary conversions
  8. Insurance proceeds, settlements, other relief payments
  9. Depreciation of replacement property
  10. Preparing Form 4684

Benefits

The panelist will review these and other critical issues:

  • Properly preparing Form 4684, Casualties and Thefts
  • IRS relief for taxpayers impacted by the California wildfires and other disasters
  • Relief available under the Federal Disaster Relief Act of 2023
  • Pending disaster relief legislation
  • The impact of insurance reimbursements and settlements loss deductions

Faculty

Pon, Larry
Larry Pon, CPA/PFS, CFP, EA, USTCP, AEP
CPA/PFS, CFP, EA, USTCP, AEP
Pon & Associates

Mr. Pon has been in practice since 1986 providing comprehensive accounting, tax, payroll, and business advisory...  |  Read More

Attend on May 7

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CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend May 7?

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CPE On-Demand

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