Which sections to complete

There are three worksheets to complete for casualty and theft losses:

Section A: Personal use property

Section B: Business and income-producing property

Section C: Theft loss deduction for Ponzi-type investment scheme using the procedures in IRS Revenue Procedure 2009-20

Complete Section A to compute casualty or theft gains and losses for property that is not used in a trade or business or for income-producing purposes. Also complete Section A to compute casualty or theft losses and gains related to the portion of your home used for business if you used the federal simplified method to determine your deductible expenses for business use of your home.

Complete Section B to compute casualty or theft losses and gains 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, compute the personal part in Section A and the business part in Section B.

Complete Section C to compute a theft loss deduction from a Ponzi-type investment scheme if you qualify to use IRS Revenue Procedure 2009-20, as modified by IRS Revenue Procedure 2011-58, and choose to follow the procedures in the guidance.

Complete this worksheet to calculate the amount of your casualty and theft losses to enter on Form IT-196:

line 20, Casualty and theft losses, other than a federal qualified disaster loss,

line 24, Other expenses,

line 30, Casualty and theft losses of income-producing property, and

line 37, Federal qualified disaster loss.