Malika and Henry's vacation home was completely destroyed by fire. They had no insurance to the cover the loss. On which of the following forms would they report their loss?

Question

Quizplus · Accepted Answer

Malika and Henry should report their loss on Form 4684, Casualties and Thefts, as it is a casualty loss. They should also include the loss as an itemized deduction on Schedule A. This allows them to potentially recoup some of the loss through a tax deduction, but only if they itemize their deductions instead of taking the standard deduction.

Malika and Henry's Vacation Home Was Completely Destroyed by Fire