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2025›Instructions for Form 4684›Specific Instructions

Which Sections To Complete

2025 Inst 4684 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States

Use Section A to figure casualty or theft gains and losses for property that isn’t used in a trade or business or for income-producing purposes. Also use Section A to figure casualty or theft losses and gains related to the portion of your home used for business if you used the simplified method to determine your deductible expenses for business use of your home.

6 Instructions for Form 4684 (2025)

Use Section B to figure casualty or theft gains and losses for property that is used in a trade or business or for income-producing purposes.

If property is used partly in a trade or business and partly for personal purposes, such as a personal home with a rental unit, figure the personal part in Section A and the business part in Section B.

Use Section C to figure a theft loss deduction from a Ponzi-type investment scheme if you qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, and choose to follow the procedures in the guidance. Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. You don’t need to complete Appendix A. See Losses From Ponzi-Type Investment Schemes, later.

Use Section D to elect (or revoke an election) to deduct in the immediately preceding tax year a loss that was attributable to a federally declared disaster and occurred in a federally declared disaster area.

Section A—Personal-Use Property Use a separate column for lines 2 through 9 to show each item lost or damaged from a single casualty or theft described on line 1. If more than four items were lost or damaged, use additional sheets following the format of lines 1 through 9.

Use a separate Form 4684 through line 12 for each casualty or theft involving property not used in a trade or business or for income-producing purposes. For example, use a separate Form 4684 through line 12 for property lost or damaged due to any qualified disaster described in Qualified disaster loss , earlier.

Don’t include any loss previously deducted on an estate tax return.

If you are liable for casualty or theft losses to property you lease from someone else, see Leased property under Figuring a Loss in Pub. 547.

FEMA disaster declaration numbers. If you are reporting a casualty or theft loss attributable to a federally declared disaster, check the box and enter the DR or EM declaration number assigned by FEMA in the space provided above line 1 on your 2025 Form 4684. A list of federally declared disasters and FEMA disaster declaration numbers is available at FEMA.gov/Disaster .

The FEMA disaster declaration number consists of the letters “DR” and four numbers or the letters “EM” and four numbers. For example, enter “DR-4865” in the respective entry spaces for the Arkansas Severe Storms and Tornadoes.

Line 1

Describe the type of property (for example, furniture, jewelry, car, etc.). If you are reporting a loss attributable to a federally declared disaster, and you checked the box and entered the FEMA disaster declaration number in the space provided above line 1, enter the ZIP code for the property most affected on the line for Property A .

Line 2

Cost or other basis usually means original cost plus improvements. Subtract any postponed gain from the sale of a previous main home. Special rules apply to property received as a gift or inheritance. See Basis Other Than Cost in Pub. 551 for details. If you inherited the property from someone who died in 2010 and the executor of the decedent’s estate made the election to file Form 8939, Allocation of Increase in Basis for Property Received From a Decedent, refer to the information provided by the executor or see Pub. 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, available at IRS.gov/Pub/IRS-Prior/p4895--2011.pdf .

Line 3

Enter on this line the amount of insurance or other reimbursement you received or expect to receive for each property. Include your insurance coverage whether or not you are filing a claim for reimbursement. For example, your car worth $2,000 is totally destroyed in a flood in an area designated as a federal disaster. You are insured with a $500 deductible, but decide not to report it to your insurance company because you are afraid the insurance company will cancel your policy. In this case, enter $1,500 on this line.

If you expect to be reimbursed but haven’t yet received payment, you must still enter the expected reimbursement from the loss. If, in a later tax year, you determine with reasonable certainty that you won’t be reimbursed for all or part of the loss, you can deduct for that year the amount of the loss that isn’t reimbursed.

Types of reimbursements. Insurance is the most common way to be reimbursed for a casualty or theft loss, but if:

  • Part of a federal disaster loan is forgiven, the part you don’t have to pay back is considered a reimbursement;

  • The person who leases your property must make repairs or must repay you for any part of a loss, the repayment and the cost of the repairs are considered reimbursements;

  • A court awards you damages for a casualty or theft loss, the amount you are able to collect, minus lawyers’ fees and other necessary expenses, is a reimbursement;

  • You accept repairs, restoration, or cleanup services provided by relief agencies, it is considered a reimbursement; or

  • A bonding company pays you for a theft loss, the payment is also considered a reimbursement.

Lump-sum reimbursement. If you have a casualty or theft loss of several assets at the same time and you receive a lump-sum reimbursement, you must divide the amount you receive among the assets according to the fair market value of each asset at the time of the loss.

Grants, gifts, and other payments. Grants and other payments you receive to help you after a casualty are considered reimbursements only if they must be used specifically to repair or replace your property. Such

Instructions for Form 4684 (2025) 7

payments will reduce your casualty loss deduction. If there are no conditions on how you have to use the money you receive, it isn’t a reimbursement.

Use and occupancy insurance. If insurance reimburses you for your loss of business income, it doesn’t reduce your casualty or theft loss. The reimbursement is income and is taxed in the same manner as your business income.

Main home destroyed. If you have a gain because your main home was destroyed, you can generally exclude the gain from your income as if you had sold or exchanged your home. You may be able to exclude up to $250,000 of the gain (up to $500,000 if married filing jointly). To exclude a gain, you must generally have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date it was destroyed. For information on this exclusion, see Pub. 523. If you exclude the gain and the entire gain is excludable, don’t report the casualty on Form 4684. If the gain is more than you can exclude, reduce the insurance or other reimbursement by the amount of the exclusion and enter the result on line 3. Attach a statement showing the full amount of insurance or other reimbursement and the amount of the exclusion. You may be able to postpone reporting the excess gain if you buy replacement property. See Gain on Reimbursement and Gains Realized on Homes in Disaster Areas , earlier.

Line 4

If you are entitled to an insurance payment or other reimbursement for any part of a casualty or theft loss but you choose not to file a claim for the loss, you can’t realize a gain from that payment or reimbursement. Therefore, figure the gain on line 4 by subtracting your cost or other basis in the property (line 2) only from the amount of reimbursement you actually received. Enter the result on line 4, but don’t enter less than zero.

If you filed a claim for reimbursement but didn’t receive it until after the year of the casualty or theft, include the gain in your income in the year you received the reimbursement.

Lines 5 and 6

Fair market value (FMV) is the price at which the property would be sold between a willing buyer and a willing seller, each having knowledge of the relevant facts. The difference between the FMV immediately before the casualty or theft and the FMV immediately after represents the decrease in FMV because of the casualty or theft.

The FMV of property after a theft is zero if the property isn’t recovered.

FMV is generally determined by a competent appraisal. The appraiser’s knowledge of sales of comparable property about the same time as the casualty or theft, knowledge of your property before and after the

occurrence, and the methods of determining FMV are important elements in proving your loss.

The appraised value of property immediately after the casualty must be adjusted (increased) for the effects of any general market decline that may occur at the same time as the casualty or theft. For example, the value of all nearby property may become depressed because it is in an area where such occurrences are commonplace. This general decline in market value isn’t part of the property’s decrease in FMV as a result of the casualty or theft.

Replacement cost or the cost of repairs isn’t necessarily FMV. However, you may be able to use the cost of repairs to the damaged property as evidence of loss in value if:

  • The repairs are actually made;

  • The repairs are necessary to restore the property to the condition it was in immediately before the casualty;

  • The amount spent for repairs isn’t excessive;

  • The repairs only correct the damage caused by the casualty; and

  • The value of the property after the repairs isn’t, as a result of the repairs, more than the value of the property immediately before the casualty.

To figure a casualty loss to real estate not used in a trade or business, or for income-producing purposes, measure the decrease in value of the property as a whole. All improvements, such as buildings, trees, and shrubs, are considered together as one item. Figure the loss separately for other items. For example, figure the loss separately for each piece of furniture.

Safe harbor methods for determining casualty and theft losses. See Revenue Procedure 2018-08, 2018-2 I.R.B. 286, available at IRS.gov/IRB/2018-02_IRB, for safe harbor methods that you may use in determining the amount of your casualty and theft losses for your home and personal belongings.

Safe harbor reporting requirements for Form 4684. If you use one of the safe harbor methods provided in Revenue Procedure 2018-08, you must attach a statement to Form 4684 stating that you used Revenue Procedure 2018-08 to determine the amount of your casualty loss. Include the specific safe harbor method used. When completing Form 4684, do not enter an amount on line 5 or line 6 for each property. Instead, enter the decrease in the FMV determined in the relevant safe harbor method on line 7.

Line 11

If you sustained a qualified disaster loss, including those sustained in 2025, add the amounts on line 4 of all Forms 4684. Compare the sum with the amount on line 10. If the amount on line 10 is larger, enter $500 on line 11 of the Form 4684 reporting the qualified disaster losses.

If the amount on line 10 is smaller, or if you are reporting a disaster loss, enter $100 and complete the remainder of the form without applying the special rules for qualified disaster losses.

8 Instructions for Form 4684 (2025)

Line 13

Enter on this line the amounts from line 4 of all Forms 4684 reporting a gain.

Line 14

Note: An exception to the rule that disallows a deduction for personal casualty and theft losses other than those attributable to federally declared disasters applies if you have personal casualty gains reported on line 13 of your Form 4684. You will deduct the portion of your personal casualty losses not attributable to a federally declared disaster to the extent the loss doesn’t exceed your personal casualty gains. Any remaining personal casualty gains will be used to reduce the amount of your deductible federal casualty losses.

If you have personal casualty losses that are not attributable to a federally declared disaster, such as those described above, use Worksheet 1-1 to calculate the amount you should enter on line 14. Otherwise, add the amounts on line 12 of all Forms 4684 and enter that total on line 14.

Worksheet 1-1. Losses Not Attributable to a Federally Declared Disaster—Line 14

1. Add the amounts from line 12 of all Forms 4684 reporting losses not attributable to a federally declared disaster . . . . . . . . . . . . . . . . . . . . . . 1.

2. Add the amounts from line 12 of all Forms 4684 reporting losses attributable to a federally declared disaster. . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter the smaller of line 1 or line 13 of Form 4684 . . . . . . . . . . . . . . . . . . . . 3.

4. Add lines 2 and 3. Enter the result here and on Form 4684, line 14 . . . . . . . . . . . . . . . . . . . . . . . 4.

Line 15

Note: You will complete line 15 differently depending on whether you have a net gain or loss and whether you have a qualified disaster loss.

Net gain. If line 13 is more than line 14, you have a net gain. Report the gain as follows.

  • Combine your short-term gains with your short-term losses and include the net short-term gain or (loss) on Schedule D (Form 1040), line 4. Estates and trusts include this amount on Schedule D (Form 1041), line 4.

  • Combine your long-term gains with your long-term losses and include the net long-term gain or (loss) on Schedule D (Form 1040), line 11. Estates and trusts include this amount on Schedule D (Form 1041), line 11.

The holding period for long-term gains and losses is more than 1 year. For short-term gains and losses, it is 1 year or less. To figure the holding period, begin counting

on the day after you received the property and include the day the casualty or theft occurred.

Generally, if you inherit property, you are considered to have held the property for longer than 1 year, regardless of how long you actually held it. If you inherited property from someone who died in 2010 and the executor made the election to file Form 8939, refer to the information provided by the executor or see Pub. 4895, available at IRS.gov/Pub/IRS-Prior/p4895--2011.pdf , to determine your holding period.

Net loss. If line 13 is less than line 14 and you have qualified disaster losses subject to the $500 reduction on line 11 on any Form(s) 4684:

  • Subtract line 13 from line 14. Enter the smaller of this difference or the amount on line 12 of the Form 4684 listing those qualified disaster losses. The amount is your net qualified disaster loss. If you are itemizing your deductions, enter the amount on line 16 of Schedule A (Form 1040), or line 7 of Schedule A (Form 1040-NR), and “Net Qualified Disaster Loss.” If you are claiming the increased standard deduction, enter the amount on line 16 of Schedule A (Form 1040), or line 7 of Schedule A (Form 1040-NR), and “Net Qualified Disaster Loss.” Also, do not include this amount on line 15 of Schedule A (Form 1040), or line 6 of Schedule A (Form 1040-NR), if you are not itemizing your deductions.

Complete the rest of Schedule A either by:

  • Itemizing other deductions as usual; or

  • Including the amount of your standard deduction on the dotted line next to Schedule A (Form 1040), line 16, or Schedule A (Form 1040-NR), line 7. Also, enter “Standard Deduction Claimed With Qualified Disaster Loss” on that dotted line next to this amount. See the instructions for Schedule A (Form 1040) or the Instructions for Form 1040-NR for more information. If you are also filing Form 6251, see Taxpayers who also file the 2025 Form 6251, Alternative Minimum Tax for Individuals , next.

Don’t complete the rest of this section if all your personal casualty and theft losses are qualified disaster losses subject to the $500 reduction.

If line 13 is less than line 14 and you have no qualified disaster losses subject to the $500 reduction on line 11 of your Form 4684, enter zero and go to line 16 and complete the rest of the section.

Taxpayers who also file the 2025 Form 6251, Alternative Minimum Tax for Individuals. If you file Schedule A (Form 1040) or Schedule A (Form 1040-NR) just to claim an increased standard deduction on Form 1040, 1040-SR, or 1040-NR, due to a loss you suffered related to property in a federally declared disaster area, enter zero on Form 6251, line 2a. Next, include the amount of your standard deduction (before it is increased by any net qualified disaster loss) in the total on line 3. This is the amount you listed on the dotted line next to Schedule A (Form 1040), line 16 or Schedule A (Form 1040-NR), line 7. If you filed Schedule A to itemize your deductions, then don’t make this adjustment.

Instructions for Form 4684 (2025) 9

Line 17

Estates and trusts figure AGI in the same way as individuals, except that the costs of administration are allowed in figuring AGI.

Section B—Business and Income-Producing Property Caution: You can no longer claim any miscellaneous itemized deductions. As a result, business casualty and theft losses of property used in performing services as an employee cannot be deducted or applied in the netting process to offset gains.

Use a separate column of Part I, lines 20 through 27, to show each item lost or damaged from a single casualty or theft described on line 19. If more than four items were lost or damaged, use additional sheets following the format of Part I, lines 19 through 27.

Use a separate Form 4684, Section B, Part I, for each casualty or theft involving property used in a trade or business or for income-producing purposes. Use one Section B, Part II, to combine all Sections B, Part I.

For details on the treatment of casualties or thefts to business or income-producing property, including rules on the loss of inventory through casualty or theft, see Figuring a Loss in Pub. 547.

Losses From Financial Scams

The IRS has issued guidance to assist taxpayers who are victims of financial scams. Victims of certain scams may claim a theft loss deduction under section 165 if all the following conditions apply.

  • The loss must result from criminal conduct classified as theft under applicable state law.

  • The taxpayer must have no reasonable prospect of recovering the stolen funds.

  • The loss must arise from a transaction entered into for profit.

If you were the victim of a financial scam, review advice memorandum number 202511015 for additional guidance.

Home Used for Business or Rented Out

If you had a casualty or theft loss involving a home you used for business or rented out, your deductible loss may be limited. First, complete Form 4684, Section B, lines 19 through 26. If the loss involved a home used for a business for which you are filing Schedule C (Form 1040), Profit or Loss From Business, figure your deductible casualty or theft loss on Form 8829, Expenses for Business Use of Your Home (if you are using Form 8829). Enter on Form 4684, line 27, the deductible loss from Form 8829, line 35, and “See Form 8829” above line 27. For a home you rented out or used for a business for which you aren’t filing Schedule C (Form 1040), see section 280A(c)(5) to figure your deductible loss. Attach a statement showing your computation of the deductible loss, enter that amount on line 27, and enter “See attached statement” above line 27.

If you used the simplified method to determine your deductible expenses for business use of your home for 2025, figure the casualty or theft loss for the home office in Section A instead of on Form 8829 and Section B.

Property Used in a Passive Activity

A gain or loss from a casualty or theft of property used in a passive activity isn’t taken into account in determining the loss from a passive activity unless losses similar in cause and severity recur regularly in the activity. See Form 8582, Passive Activity Loss Limitations, and its instructions for details.

Losses From Ponzi-Type Investment Schemes

The IRS has issued the following guidance to assist taxpayers who are victims of losses from Ponzi-type investment schemes.

If you qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, and choose to follow the procedures in the guidance, first fill out Section C to determine the amount to enter on Section B, line 28. Skip lines 19 through 27. Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. You don’t need to complete Appendix A.

For more information, see the instructions for Section C, later, and the above revenue ruling and revenue procedures.

If you choose not to use the procedures in Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 through 39, as appropriate.

Section 179 Property of a Partnership or S Corporation

Partnerships and S corporations that have a casualty or theft involving property for which the section 179 expense deduction was previously claimed and passed through to the partners or shareholders must not use Form 4684 to report the transaction. Instead, see the Instructions for Form 4797 for details on how to report it. Partners and S corporation shareholders who receive a Schedule K-1 reporting such a transaction should see the Instructions for Form 4797 for details on how to figure the amount to enter on Form 4684, line 20.

Line 19

If you are claiming a loss from a fraudulent investment arrangement and you are not filling out Section C, you must enter the name, taxpayer identification number (if known), and address (if known) of the individual or entity that conducted the fraudulent arrangement. Complete the rest of Section B, Part I.

10 Instructions for Form 4684 (2025)

Line 20

Cost or adjusted basis usually means original cost plus improvements, minus depreciation allowed or allowable (including any section 179 expense deduction), amortization, depletion, etc. Special rules apply to property received as a gift or inheritance. See Basis Other Than Cost in Pub. 551 for details. If you inherited the property from someone who died in 2010 and the executor of the decedent’s estate made the election to file Form 8939, refer to the information provided by the executor or see Pub. 4895, available at IRS.gov/Pub/IRS- Prior/p4895--2011.pdf .

If you dispose of a portion of a Modified Accelerated Cost Recovery System (MACRS) asset as a result of a casualty event, enter the adjusted basis of the disposed portion of the asset. MACRS assets include buildings (and their structural components) and other tangible depreciable property placed in service after 1986 that is used in a trade or business or for the production of income. The adjusted basis of the disposed portion of the asset is the adjusted depreciable basis of that disposed portion at the time of its disposition, as determined under the applicable convention. You must reduce the basis and the depreciation reserve of the MACRS asset by the basis and depreciation reserve attributable to the disposed portion as of the first day of the tax year, before you compute the depreciation deduction for the current year. To figure the depreciation deductions for the remaining MACRS asset and the disposed portion, see the instructions for Form 4562, line 19, column (g). For more information, see Regulations section 1.168(i)-8. For partial dispositions from casualties to MACRS assets accounted for in a General Asset Account, see Regulations section 1.168(i)-1.

Line 21

See the instructions for line 3, earlier.

Line 22

See the instructions for line 4, earlier.

Lines 23 and 24

See the instructions for lines 5 and 6 for details on determining FMV.

Loss on each item figured separately. Unlike a casualty loss to personal-use real estate, in which all improvements are considered one item, a casualty loss to business or income-producing property must be figured separately for each item. For example, if casualty damage occurs to both a building and to trees on the same piece of real estate, measure the loss separately for the building and for the trees.

Line 28

If the amount on line 28 includes losses on property held 1 year or less, and losses on property held for more than 1 year, you must allocate the amount between lines 29 and

34 according to how long you held each property. Enter on line 29 all gains and losses on property held 1 year or less. Enter on line 34 all gains and losses on property held more than 1 year, except as provided in the instructions for line 33.

If you are claiming a theft loss from a Ponzi-type investment scheme and are following the procedures in Revenue Procedure 2009-20, 2009-14 I.R.B. 749, enter on line 28 the amount from Section C, line 51. Don’t complete Section B, lines 19 through 27, of Form 4684 for that loss. You must fill out Section B, Part II.

Part II, Column (a)

On lines 29 and 34, use a separate line to identify each casualty or theft. If you have more than two casualties or thefts, attach an additional sheet following the format of lines 29 and 34.

Example. Ishmael is claiming two casualty losses for his business property. One loss is due to a fire in July and the other loss is due to a hurricane in October. He fills out one Section B, Part I, for the fire and another separate Section B, Part I, for the hurricane. He held the property for 1 year or less. He fills out only one Section B, Part II, to summarize the two losses he is claiming. On line 29, he enters “Fire” on the first line and “Hurricane” on the second line.

Tip: If you are claiming a theft loss from a Ponzi-type investment scheme, enter the name of the individual or entity that conducted the fraudulent arrangement.

Part II, Column (b)(i)

Enter the part of line 28 from trade, business, rental, or royalty property.

Part II, Column (b)(ii)

Enter the part of line 28 from income-producing property. Income-producing property is property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art.

Part II, Column (c)

On line 29, enter the part of line 22 that is from property held for 1 year or less.

On line 34, enter the part of line 22 that is from property held for more than 1 year.

Line 30

Include in the total any amounts from the additional sheet you attached because you had more than two casualties or thefts on line 29.

Instructions for Form 4684 (2025) 11

Line 31

If Form 4797, Sales of Business Property, isn’t otherwise required, enter the amount from this line on your Schedule 1 (Form 1040), line 4 and check the “4684” box.

Line 32

Estates and trusts, enter the amount from line 32 on the “Other deductions” line of your tax return. Partnerships, enter on Form 1065, Schedule K, line 13e. S corporations, enter on Form 1120-S, Schedule K, line 12e. Next to that line, enter “Form 4684.”

Line 33

If you had a casualty or theft gain from certain trade, business, or income-producing property held more than 1 year, you may have to recapture part or all of the gain as ordinary income. See the instructions for Form 4797, Part III, for more information on the types of property subject to recapture. If recapture applies, complete Form 4797, Part III, and this line, instead of Form 4684, line 34.

Line 35

Include in the total any amounts from the additional sheet you attached because you had more than two casualties or thefts.

Line 38a

Taxpayers, other than partnerships and S corporations, if Form 4797 isn’t otherwise required, enter the amount from this line on the appropriate line for the form you are filing.

Form 1040, 1040-SR, or 1040-NR filers. Enter this amount on your Schedule 1 (Form 1040), line 4 and check the “4684” box.

Form 1120, 1120-F, and 1120-POL filers. See the Instructions for Schedule D (Form 1120) for where to report this amount.

Section C—Theft Loss Deduction for Ponzi-Type Investment Scheme Using the Procedures in Revenue Procedure 2009-20 Fill out Section C if you claim a theft loss deduction for a Ponzi-type investment scheme and you meet both of the following conditions.

  • You qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58.

  • You choose to follow the procedures in the guidance.

If you meet both conditions, fill out Section C in lieu of Appendix A in Revenue Procedure 2009-20.

For more information about claiming a theft loss deduction from a Ponzi-type investment scheme, see the following guidance.

Caution: Don’t fill out Section C if you don’t qualify to use the procedures in Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, or you don’t choose to follow them. Instead, go to the instructions for Section B.

Line 40

Enter the initial amount of cash or basis of property that you invested in the investment arrangement. Don’t include any of the following on this line, line 41, or line 42.

  • Amounts borrowed from the responsible group and invested in the specified fraudulent arrangement, to the extent the borrowed amounts weren’t repaid at the time the theft was discovered.

  • Amounts such as fees that were paid to the responsible group and deducted for federal income tax purposes.

  • Amounts reported to you (the qualified investor) as taxable income that weren’t included in gross income on the investor’s federal income tax returns.

  • Cash or property that you (the qualified investor) invested in a fund or other entity (separate from you (the qualified investor) for federal income tax purposes) that invested in a specified fraudulent arrangement.

For definitions of responsible group, specified fraudulent arrangement, and qualified investor, see Section 4 of Revenue Procedure 2009-20.

Line 41

Enter the amounts of cash or the basis of property that you invested after you made the initial investment (including amounts reinvested).

Line 42

Enter the total amounts of net income (for example, interest and dividends minus expenses) from the specified fraudulent arrangement that, consistent with information received from that arrangement, you included in income for federal tax purposes for all tax years before the discovery year, including tax years for which a refund is barred by the statute of limitations.

Discovery year. The discovery year is the tax year when one of the following occurs.

  • The indictment, information, or complaint described in section 4.02(1) or (2) of Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) is filed.

  • The complaint or similar document described in section 4.02(3) of Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) is filed, or the death of the lead figure occurs, whichever is later.

12 Instructions for Form 4684 (2025)

Line 44

Enter the total amount of cash or property that you withdrew from the investment arrangement in all years (whether designated as income or principal).

Line 45

This is the amount of your investment that is eligible for a deduction before any actual or potential recoveries are taken into account.

Line 46

Potential third-party recovery. This is the amount of all actual or potential claims for recovery, as of the last day of the discovery year (defined earlier), that are not from potential insurance or Securities Investor Protection Corporation (SIPC) recovery, or a potential direct recovery.

Potential insurance/SIPC recovery. This is the total of all actual or potential claims for reimbursement that, as of the last day of the discovery year, are attributable to:

  • Insurance policies in your name that protect you from this type of loss;

  • Contractual arrangements, other than insurance, that guaranteed or otherwise protected against this type of loss; or

  • Amounts payable from SIPC, as advances for customer claims under the Securities Investor Protection Act of 1970, or by a similar entity under a similar provision.

Potential direct recovery. This is the amount of all actual or potential claims for recovery, as of the last day of the discovery year (defined earlier), against the responsible individual or group.

Line 48

Enter the amounts you actually received as a reimbursement or recovery from any source. Don’t include amounts that are potential direct recoveries (defined earlier) or potential third-party recoveries (defined earlier).

Line 49

Enter the amount of potential insurance/SIPC recovery (defined earlier).

Line 51

Enter the amount from line 51 on line 28 of Section B. Don’t complete lines 19 through 27 for this loss. Then complete Section B, Part II.

Tip: If you had other casualties or thefts, fill out a separate Section B, Part I, for them.

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2025 Inst 4684 (PDF)

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