SECTION 3. SCOPE

.01 In general . An individual who suffered a casualty loss to the individual’s personal-use residential real property may use the safe harbor methods provided in sections 4.02, 4.03, or 4.04 of this revenue procedure in determining the amount of the individual’s casualty loss under § 165. An individual who suffered a casualty loss to the individual’s personal-use residential real property due to a Federally declared disaster may use any of the safe harbor methods provided in section 4 of this revenue procedure in determining the amount of the individual’s casualty loss under § 165. An individual who suffered a casualty or theft loss to the individual’s personal belongings may use the safe harbor method provided in section 5.01 of this revenue procedure in determining the amount of the individual’s casualty and theft loss under § 165. An individual who suffered a casualty or theft loss to the individual’s personal belongings due to a Federally declared disaster may use either of the safe harbor methods provided in section 5 of this revenue procedure in determining the amount of the individual’s casualty and theft loss under § 165.

.02 Definition of personal-use residen- tial real property and personal residence . For purposes of this revenue procedure, personal-use residential real property is real property, including improvements (such as buildings and ornamental trees and shrubbery), that is owned by the individual who suffered a casualty loss and

that contains at least one personal residence. Personal-use residential real property does not include a personal residence if any part of the personal residence is used as rental property or contains a home office used in a trade or business or transaction entered into for profit. For purposes of this revenue procedure, a personal residence is a single family residence, or a single unit within a contiguous group of attached residential units (for example, a townhouse or duplex), owned by the individual who suffered a casualty loss, and includes any structures attached to the residence or single unit. For purposes of this revenue procedure, a personal residence does not include a condominium or cooperative unit, or any other property for which the individual who suffered the casualty loss does not own the structural components of the building (such as the foundation, walls, and roof), or owns only a fractional interest in all of the structural components of the building, or a mobile home or trailer.

.03 Definition of personal belongings . For purposes of this revenue procedure, a personal belonging is an item of tangible personal property that is owned by the individual who suffered a casualty or theft loss and that is not used in a trade or business or in a transaction entered into for profit. For purposes of this revenue procedure, personal belongings do not include a boat, aircraft, mobile home, trailer, or vehicle (as defined in section 5.02(2) of this revenue procedure), or an antique or other asset that maintains or increases its value over time.

.04 Taking into account no-cost re- pairs . An individual using a safe harbor method described in this revenue procedure must take into account the value of any no-cost repairs as described in section 6 of this revenue procedure. .05 Limited use of safe harbor meth- ods . The safe harbor methods described in sections 4 and 5 are available only in the circumstances described in this revenue procedure.