Publication 584-B: Business Casualty, Disaster, and Theft Loss Workbook

Publication 584-B, also referred to as 584-B or 584 B, is a workbook provided by the Internal Revenue Service (IRS) to assist businesses in calculating potential tax deductions for losses incurred due to casualties, disasters, or thefts of business property.

What's the Purpose of Publication 584-B?

This workbook guides you through the process of determining the amount of deductible loss you can claim on your tax return. It includes helpful schedules to organize information about:

A. Types of property: Office furniture and fixtures, information systems, motor vehicles, office supplies, buildings, and equipment.

B. Loss calculations: Fair market value before and after the event, adjusted basis of the property, and salvage value (if any).

What types of business property are covered by Publication 584-B?

Publication 584-B helps calculate losses for various business assets, including:

  • Buildings and structures
  • Office furniture and fixtures
  • Equipment and machinery
  • Inventory
  • Computers and information systems
  • Office supplies
  • Business vehicles

What qualifies as a casualty or disaster for tax purposes?

The IRS considers sudden, unexpected events causing physical damage or destruction to your business property as casualties or disasters. Examples include:

  • Fires
  • Floods
  • Tornadoes
  • Hurricanes
  • Vandalism

How does theft differ from a casualty loss?

Theft refers to the deliberate stealing of your business property. While both theft and casualties are covered in Publication 584-B, the documentation process may differ slightly for each type of loss.

Do I need to use Publication 584-B to claim a business casualty or theft loss?

While Publication 584-B provides valuable guidance, its use is not mandatory. However, it can significantly simplify the process and ensure you have all the necessary information documented for your tax return. Ultimately, you will need to file Form 4684, Casualties and Thefts, to claim your deduction.

Are There Limitations on Business Casualty and Theft Loss Deductions?

There are limitations on how much business casualty and theft losses you can deduct. These limitations are explained in the instructions for Form 4684 and may involve specific thresholds or percentage limitations based on your Adjusted Gross Income (AGI).

Losses exceeding $100: Losses below $100 per event generally cannot be deducted.

Federal disaster declaration: Losses from federally declared disasters might be fully deductible without limitations.

Partial business use: Losses on property partially used for business might have limitations.

Passive activity property: Losses on property used in passive activities might have limitations.

Where can I find the latest version of Publication 584-B?

You can download the latest version of Publication 584-B attached below.