The client suffered the partial loss of a business asset due to casualty. After filling out the Casualty and Theft section to produce Form 4684, line 26 instructs you to enter the lesser of lines 20 and 25. However, line 26 is printing the amount from line 20, which is the larger of the two.
Why is this happening?
Under the description for Form 4684, line 26, there's a description that reads, "If the property was totally destroyed by casualty or lost from theft, enter on line 26 the amount from line 20."
ProConnect will automatically print the amount from line 20 on line 26 if the Fair market value after casualty or theft field is 0 or blank.
Where is the field to enter the fair market value after casualty or theft?
This field can be found in either:
- From the Input Return tab, go to Income ⮕ Dispositions, under the Casualties and Thefts (4684) section.
- From the Input Return tab, go to Deductions ⮕ Depreciation, under the Casualty or Theft (4684) section.