REVENUE RULE 91-10

1991-1 C.B. 48, 1991-7 I.R.B. 6.

Internal Revenue Service
Revenue Ruling

LOSSES; CASUALTY; DISASTER AREA; YEAR OF DEDUCTION

Published: February 19, 1991

Section 165. Losses, 26 CFR 1.165-11: Election in respect of losses attributable to a disaster.

Losses; casualty; disaster area; year of deduction. Disaster areas in which losses for 1990 qualify for special tax treatment under section 165(i) of the Code are listed.

LAW AND ANALYSIS HOLDING

Under section 165(i) of the Internal Revenue Code, if a taxpayer suffers a loss attributable to a disaster occurring in an area subsequently determined by the President of the United States to warrant assistance by the Federal Government under the Disaster Relief and Emergency Assistance Act, Pub. L. No. 100-707, sections 101 thru 113, 102 Stat. 4689 (1988), the taxpayer may elect to take a deduction for that loss on the taxpayer's federal income tax return for the taxable year immediately preceding the taxable year in which the disaster occurred.

The election to deduct for the preceding year must be made on or before the later of (1) the original due date of the taxpayer's income tax return for the year in which the disaster occurred, or (2) the due date of the preceding year's return (taking into account extensions of time for filing granted to the taxpayer). Section 1.165-11 of the Income Tax Regulations. This section of the regulations sets forth the procedures for making an election with respect to such losses.

The provisions of section 165(i) of the Code apply only to losses that are otherwise deductible under section 165(a). An individual taxpayer may deduct losses if they are incurred in a trade or business, if they are incurred in a transaction entered into for profit, or if they are casualty losses under section 165(c)(3).

As of December 26, 1990, the President had determined that the areas listed below have been adversely affected by disasters of sufficient severity occurring during 1990 to warrant disaster assistance by the Federal Government under the Disaster Relief and Emergency Assistance Act.

There may be areas in which a disaster occurred during 1990 and which the President, after December 26, 1990, declares eligible for disaster assistance under the Disaster Relief and Emergency Assistance Act. Information concerning these areas will be published in future issues of the Internal Revenue Bulletin, and these areas will be included in this revenue ruling when it is published in the Cumulative Bulletin.


DISASTER AREAS IN 1990:


Alabama

Counties of Bibb, Blount, Calhoun, Cherokee, Chilton, Clay, Cleburne, Coosa, Cullman, Dallas, DeKalb, Etowah, Etoway, Greene, Hale, Jackson, Jefferson, Marengo, Marshall, Morgan, Randolph, Russell, St. Clair, Shelby, Sumter, Talladega, Tuscaloosa, and Walker

TYPE OF DISASTER: Severe storms, tornadoes, and flooding

DATE DISASTER OCCURRED OR BEGAN: February 3-February 16, 1990

Counties of Autauga, Baldwin, Barbour, Bullock, Butler, Calhoun, Chambers, Chilton, Choctaw, Clarke, Clay, Coffee, Conecuh, Covington, Crenshaw, Dale, Dallas, Elmore, Escambia, Geneva, Henry, Houston, Lowndes, Macon, Mobile, Monroe, Montgomery, Pike, Randolph, Russell, Tallapoosa, Washington, and Wilcox

TYPE OF DISASTER: Severe storms, tornadoes, and flooding

DATE DISASTER OCCURRED OR BEGAN: March 15-March 28, 1990


America Samoa

Territory of American Samoa

TYPE OF DISASTER: Hurricane Ofa

DATE DISASTER OCCURRED OR BEGAN: February 2-February 12, 1990


Arizona

Counties of Coconino, Gila, Graham, Maricopa, Mohave, Pima, Pinal, and Yavapai; and the Havasupai and Gila River Indian Reservations

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: July 8-September 14, 1990


Arkansas

Counties of Benton, Boone, Calhoun, Carroll, Clark, Clay, Conway, Columbia, Crawford, Desha, Faulkner, Franklin, Garland, Hempstead, Hot Spring, Izard, Jefferson, Johnson, Lafayette, Little River, Logan, Madison, Marion, Miller, Monroe, Newton, Ouachita, Perry, Pike, Polk, Pope, Pulaski, Scott, Sebastian, Stone, Union, and Yell

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: May 1-June 3, 1990


California

Counties of Los Angeles, San Bernardino, Santa Barbara, and Riverside

TYPE OF DISASTER: Wildland fires

DATE DISASTER OCCURRED OR BEGAN: June 26-July 3, 1990


Commonwealth of the Northern Mariana Islands

Islands of Agrihan, Anatahan, Rota, Saipan, and Tinian

TYPE OF DISASTER: Typhoon Koryn

DATE DISASTER OCCURRED OR BEGAN: January 15-January 16, 1990


Federated States of Micronesia

States of Chuuk (Truk), and Yap

TYPE OF DISASTER: Typhoon Owen

DATE DISASTER OCCURRED OR BEGAN: November 26-December 1, 1990


Florida

Counties of Bay, Calhous, Escambia, Gadsden, Gulf, Holmes, Liberty, Okaloosa, Santa Rosa, Walton, and Washington

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: March 16-April 9, 1990


Georgia

Counties of Baker, Bibb, Butts, Carroll, Catoosa, Chattooga, Cobb, Dade, Dooly, Douglas, Early, Fannin, Floyd, Fulton, Gilmer, Gordon, Harris, Heard, Lee, Macon, Meriwether, Monroe, Murray, Muscogee, Newton, Pike, Polk, Pulaski, Stewart, Talbot, Union, Upson, Walker, Whitfield, and Wilcox

TYPE OF DISASTER: Severe storms, tornadoes, and flooding

DATE DISASTER OCCURRED OR BEGAN: February 10-March 30, 1990

______________
Counties of Burke, Columbia, Emanuel, Jefferson, Jenkins, Johnson, McDuffie, Richmond, and Screven

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: October 11-October 29, 1990


Hawaii

Island of Hawaii

TYPE OF DISASTER: Lava flows from the PU''O' and Kupaianaa Vents of the Kilauea Volcano

DATE DISASTER OCCURRED OR BEGAN: January 24, 1990-(Continuing)


Illinois

Counties of Champaign, Douglas, Edgar, Ford, Iroquois, Livingston, McLean, Moultrie, Piatt, and Vermilion

TYPE OF DISASTER: Severe ice storm

DATE DISASTER OCCURRED OR BEGAN: February 14-February 15, 1990

_______________
Counties of Adams, Bureau, Calhoun, Cass, Douglas, Edwards, Hamilton, Hancock, Henderson, Henry, Jasper, Jo Daviess, Macon, Marion, Marshall, McDonough, Menard, Mercer, Moultrie, Putnam, Richland, Rock Island, Schulyer, Shelby, Tazewell, Wabash, Wayne, White, Whiteside, and Woodford

TYPE OF DISASTER: Severe storms, tornadoes, and flooding

DATE DISASTER OCCURRED OR BEGAN: May 15-July 3, 1990


Counties of Kane, Kendall, and Will

TYPE OF DISASTER: Tornadoes

DATE DISASTER OCCURRED OR BEGAN: August 28, 1990


Indiana

Counties of Brown, Clark, Crawford, Daviess, Dearborn, Dubois, Floyd, Franklin, Gibson, Greene, Harrison, Jackson, Jefferson, Jennings, Knox, Martin, Montgomery, Ohio, Orange, Perry, Pike, Posey, Putnam, Ripley, Scott, Switzerland, Vermillion, Warrick, and Washington

TYPE OF DISASTER: Severe storms, tornadoes, and flooding

DATE DISASTER OCCURRED OR BEGAN: May 15-June 28, 1990

________________
Lake County

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: November 27-December 14, 1990


Iowa

Counties of Audubon, Boone, Calhoun, Carroll, Cedar, Clark, Clarke, Clinton, Crawford, Dallas, Des Moines, Franklin, Greene, Hamilton, Hardin, Iowa, Jasper, Johnson, Jones, Keokuk, Linn, Louisa, Madison, Mahaska, Marion, Marshall, Monona, Monroe, Muscatine, Plymouth, Polk, Scott, Shelby, Story, Tama, Wapello, Warren, Washington, Webster, and Woodbury

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: May 18-July 6, 1990

_______________
Counties of Black Hawk, Bremer, Buchanan, Cerro Gordo, Chickasaw, Clayton, Clinton, Fayette, Franklin, Fremont, Howard Johnson, Jones, Linn, Pottawattamie, Winnesheik, and Worth

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: July 25-July 31, 1990


Mississippi

Counties of Adams, Alcron, Amite, Benton, Clarke, Coahoma, Copiah, Covington, Forrest, George, Greene, Harrison, Jackson, Jasper, Jones, Kemper, Lauderdale, Lawrence, Lincoln, Madison, Marion, Marshall, Newton, Panola, Perry, Pike, Prentiss, Quitman, Simpson, Smith, Tallahatchie, Tippah, Union, Walthall, and Wilkinson

TYPE OF DISASTER: Severe storms, Tornadoes, and flooding

DATE DISASTER OCCURRED OR BEGAN: January 24-March 15, 1990


Missouri

Counties of Bates, Benton, Boone, Callaway, Clay, Cole, Dallas, Green, Jackson, Johnson, Laclede, Lafayette, Lincoln, Maries, Miller, Moniteau, Montgomery, Morgan, Osage, Pettis, Pulaski, Ray, Saline, Warren, Washington, and Webster; and the City of Kansas City

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: May 15-June 9, 1990


Nebraska

Counties of Boone, Buffalo, Chase, Clay, Colfax, Cuming, Custer, Dodge, Douglas, Gage, Hall, Hamilton, Hitchcock, Madison, Nance, Platte, Red Willow, Sarpy, Sherman, Stanton, Thayer, Thurston, and Washington

TYPE OF DISASTER: Severe storms, tornadoes, and flooding

DATE DISASTER OCCURRED OR BEGAN: June 10-July 30, 1990


New Hampshire

Counties of Belknap, Carroll, Chesire, Coos, Grafton, Hillsborough, Merrimack, and Sullivan

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: August 7-August 11, 1990


Ohio

Counties of Athens, Belmont, Butler, Clermont, Columbiana, Fairfield, Franklin, Hamilton, Harrison, Hocking, Jackson, Jefferson, Lawrence, Licking, Madison, Mahoning, Monroe, Morrow, Muskingum, Perry, Pike, Richland, Ross, Trumbell, and Vinton

TYPE OF DISASTER: Severe storms, tornadoes, and flooding

DATE DISASTER OCCURRED OR BEGAN: May 28-July 15, 1990


Oklahoma

Counties of Adair, Atoka, Bryan, Caddo, Carter, Cherokee, Choctaw, Cleveland, Coak, Cotton, Delaware, Ellis, Garvin, Haskell, Hughes, Jefferson, Johnston, Kingfisher, Latimer, LeFlore, Lincoln, Logan, Love, Marshall, McClain, McCurtain, McIntosh, Murray, Okmulgee, Payne, Pittsburg, Pontotoc, Pottawatomie, Pushmataha, Roger Mills, Seminole, Sequoyah, and Stephens; and the City of Bethany

TYPE OF DISASTER: Severe storms, tornadoes, and flooding

DATE DISASTER OCCURRED OR BEGAN: April 14-June 1, 1990


Oregon

Counties of Clatsop, and Tillamook

TYPE OF DISASTER: Severe storms, flooding

DATE DISASTER OCCURRED OR BEGAN: January 6-January 9, 1990


Republic of Palau (Trust Territory of the Pacific Islands)

Republic of Palau

TYPE OF DISASTER: Super Typhoon Mike

DATE DISASTER OCCURRED OR BEGAN: November 10-November 11, 1990


South Carolina

Counties of Aiken, Calhoun, Cherokee, Darlington, Edgefield, Florence, Kershaw, Lancaster, Lee, Orangeburg, Spartanburg, Sumter, and Union

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: October 11-October 28, 1990


Tennessee

Counties of Hamilton, Marion, and Polk

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: February 15-February 20, 1990


Texas

Counties of Anderson, Angelina, Archer, Bosque, Bowie, Brown, Callahan, Cass, Cherokee, Clay, Collin, Comanche, Cooke, Cottle, Dallas, Denton, Eastland, Ellis, Erath, Fannin, Freestone, Grayson, Hamilton, Hansford, Henderson, Hill, Hood, Houston, Jack, Johnson, Jones, Kaufman, Lamar, Leon, Liberty, Limestone, Madison, McLennan, Mills, Montague, Motley, Navarro, Ochiltree, Palo Pinto, Parker, Payne, Pecos, Polk, Red River, San Jacinto, Shackelford, Somervell, Tarrant, Taylor, Throckmorton, Tom Green, Trinity, Upton, Van Zandt, Walker, Wharton, Wise, Wichita, and Young

TYPE OF DISASTER: Severe storms, tornadoes, and flooding

DATE DISASTER OCCURRED OR BEGAN: April-June 4, 1990


Vermont

Counties of Caledonia, Chittenden, Franklin, Lamoille, Orange, and Washington

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: July 4-July 23, 1990


Washington

Counties of Benton, Grays Harbor, King, Lewis, Pierce, Thurston, and Wahkiakum, Counties of Chelan Island, Clallam, Grays Harbor, Jefferson, King, Kitsap, Kittias, Lewis, Mason, Pacific, Pierce, San Juan, Skagit, Snohomish, Thurston, Wahkiakum, Whatcom, and Yakima

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: January 6-January 14, 1990


Wisconsin

Counties of Brown, Calumet, Crawford, Dane, Grant, Green, Iowa, Juneau, Kewaunee, Lafayette, Manitowoc, Outagamie, Richland, Rock, Sank, Vernon, and Winnebago

TYPE OF DISASTER: Severe storms, tornadoes, and flooding

DATE DISASTER OCCURRED OR BEGAN: June 22-July 19, 1990


Monroe County

TYPE OF DISASTER: Severe storms, and flooding

DATE DISASTER OCCURRED OR BEGAN: August 17-August 19, 1990


DRAFTING INFORMATION

The principal author of this revenue ruling is Karl A. La Cour of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. La Cour on (202) 566-6438 (not a toll-free call).

Rev. Rul. 91-10, 1991-1 C.B. 48, 1991-7 I.R.B. 6.