If you have a casualty and/or theft loss on property used 100% for business, you will report the loss on IRS Form 4684 Casualties and Thefts, in Section B for business property. You will need to enter this through the Business Income topic of the Federal Q&A.
To enter or review business casualty/theft losses:
- From within your TaxAct® return (Online or Desktop) click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
- Click Business Income in the Federal Quick Q&A Topics menu to expand the category and then click Casualty or theft loss from business property
- Click +Add Form 4684 Section B to create a new copy of the form or click Review to review a form already created
- The program will proceed with the interview questions for you to enter or review the appropriate information
Once this information has been entered, your loss will carry to Line 14 of IRS Form 4797 Sale of Business Property. Your total gain/loss will then be carried to Line 4 of IRS Schedule 1 (Form 1040).