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Casualty Losses and Form 4684: Federal Disaster Relief, Section 1033 Involuntary Conversions

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

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Wednesday, May 7, 2025

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

Early Registration Discount Deadline, Friday, April 11, 2025

or call 1-800-926-7926
Add to your calendar

This course will cover deducting casualty losses inside and outside of federally declared disaster areas. Our income tax veteran will describe common casualty loss scenarios, including California wildfire losses, Hurricanes Helen and Milton relief for specific southeastern states, and Section 1033 involuntary conversions for tax professionals and business owners.

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 eliminates the $500 floor 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. Casualty losses
    1. Personal
    2. Business
  2. Timing the loss deduction
  3. Calculating the loss and deduction
  4. Section 1033 involuntary conversions
  5. Insurance proceeds, settlements, other relief payments
  6. Depreciation of replacement property
  7. Federal disaster relief
  8. COVID-19 and disaster relief
  9. 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
  • 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

Early Discount (through 04/11/25)

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend May 7?

Early Discount (through 04/11/25)

CPE credit is not available on downloads.

CPE On-Demand

See NASBA details.