Disaster Relief Loss Report | 4684 Loss Recovery Federal Disaster IRS Casualty Loss

Who is Disaster Relief?

We prepare Disaster Loss Reports that provide substantiating evidence for an IRS Casualty Loss filing through form 4684. This form allows people like you who have suffered losses in disasters to deduct unreimbursed losses as a tax deduction that may save thousands of dollars in taxes. In order to file this form, you need a professional valuation of your loss. That’s where we come in. We can provide a Disaster Relief Loss Report for you to support your form 4684 filing. Our reports are guaranteed to be IRS acceptable.

We are listed in the FEMA Disaster Response Directory. The Response Registry lists contractors who perform disaster recovery including debris removal, distribution of supplies, appraisal and reconstruction, and other disaster or emergency relief activities established in accordance with 6 U.S.C. 796, Registry of Disaster Response Contractors.

Before I buy a Disaster Loss Report, can I find out how much I'll save?

Our Free Tax Recovery Estimator will show you how much you might save using this IRS tax provision. You simply enter your address, your income and estimate your normal Schedule A deductions, and we show if this program will work for you and how much you might save in taxes.

Bear in mind that this is just an estimate -- with an official Loss Report from Disaster Relief you may save even more. If you file your own taxes, use the Loss Report as supporting proof for your form 4684. If you use a Tax Preparation Service, give them your Loss Report to file with your taxes.

You can find more information about the program at :

https://crsreports.congress.gov/product/pdf/IF/IF12574

How does a loss write-off work?

There are a number of rules surrounding form 4684.

Your event must be a “Federal Disaster”, which is declared by the President. In order to use the Form 4684 Casualty Loss Program, you must itemize on Schedule A.

If the Congress also declares the event as "Qualified," it is easier to file because you don’t need to itemize, you use your Standard Deduction in addition to your Form 4684 deduction.

Note that there have been no Qualified disasters since 2020. If your event does become Qualified, you can amend your previous tax filing for up to three years. In general it is better to file immediately and not wait for Qualification. Our Free Tax Recovery Estimator can show you why.

The amount of your deduction will be reduced if you have received an insurance settlement, but receiving a settlement does not preclude you from filing Form 4684.

You can file form 4684 and indicate that you want the deduction applied to your prior year’s taxes, which could get you money sooner as the IRS has promised to give priority to those people who file in this way.

If you can't use all your deduction, for instance if your loss is greater than your income, it becomes a "Net Operating Loss" (NOL) and carries through to subsequent years, but is subject to additional restrictions.

What does the Disaster Relief Loss Report cost?

Using our form to determine if you’re eligible is free. We charge a flat fee of $250 for your personalized Disaster Loss Report. A typical Home Appraisal, an alternative to our report, typically costs substantially more.

Click here to see a sample report.

Click here to order your own personalized report.

Why can’t I just use Zillow or similar estimates?

The IRS has determined that form 4684 needs to be accompanied by a “competent valuation” such as a Home Appraisal or Disaster Relief Loss Report. The IRS has stated that:

Automated Estimates such as Zillow and Redfin are not acceptable.
Broker estimates are not acceptable.
Homeowner estimates are not acceptable.
Insurance estimates are acceptable, but are typically low, and a Disaster Relief Loss Report may result in a larger deduction.
Actual rebuilding bills may be used, but only after your project is complete, so it will take longer and a Disaster Relief Loss Report may result in a larger deduction.

Read our posting to learn more about why MLS listings and Zillow reports will get you into trouble with the IRS.

A Disaster Relief Loss Report gets you your money faster with Guaranteed IRS acceptance. And, you still preserve your options. You can always go back and amend a filing up to three years prior if your rebuilding cost exceeds our loss estimate.

Can I file even if I get an Insurance settlement?

Disaster Relief’s free online form can tell you if it’s worth filing. Even if you have received an insurance settlement, it may still benefit you to file Form 4684. Our free Tax Recovery Estimator can help you decide.

How can I get my money faster?

That's a great question!

Let's assume your tax deadline for this year is still pretty far away. You can use Form 4684 to apply your deduction to last year's taxes! The IRS has committed to expediting the returns for anyone in a disaster who files an amendment. This could result in a check in your mailbox within a couple of weeks.

Next, let's consider multi-year recovery. In a large-loss situation, you may end up with what's known as an "NOL" (Net Operating Loss) or a loss carry-forward. This is an amount that you cannot use this year, but you can carry it forward in the future indefinitely until it is used up.

You may have options:

If you have a traditional IRA, this a prime opportunity to convert it to a Roth IRA and use your loss to absorb the tax liability in the current year.

If you have investments with pending Capital Gains, you can consider taking these gains and using the deduction to offset them.

If either of this situations apply to you, we recommend you contact your Tax Professional and discuss these strategies to optimize your tax situation..

Is this a scam?

We understand why you're asking this. Disaster victims are among the most targeted groups for scammers. The IRS Casualty Loss provision was established in 1913. We encourage you to do your homework. Look up form 4684 and the Federal Casualty Loss Program, talk to a CPA or other Tax Professional about the program and contact appraisers in your area to compare costs. Try out our Free Tax Recovery Estimator and discuss the result with your tax professional. We offer a full refund if you fail to save at least $250 on your taxes.

Disaster Relief is listed in the FEMA Disaster Response Registry, and has an A+ rating from the Better Business Bureau as an accredited member.

How can I find out more?

Speak with your tax preparer about how form 4684 can help you. We're also happy to answer any questions and refer you to a local tax service if you need one. You can reach us at 505.490.2011.