REVENUE RULE 91-69

1991-2 C.B. 39, 1991-52 I.R.B. 5.

Internal Revenue Service
Revenue Ruling

LOSSES; CASUALTY; DISASTER AREAS; YEAR OF DEDUCTION

Published: December 30, 1991

Section 165. Losses, 26 CFR1.165-11: Election in respect of losses attributable to a disaster.

Losses; casualty; disaster areas; year of deduction. Disaster areas in which losses for 1991 qualify for special tax treatment under section 165(i) of the Code are listed.

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 claim 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.

Section 1.165-11 of the Income Tax Regulations provides that 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).

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 6, 1991, the President had determined that the areas listed below have been adversely affected by disasters of sufficient severity occurring during 1991 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 1991 and which the President, after December 6, 1991, 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 1991:

Alabama
Counties of Colbert, Cullman, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, and Winston
Type of Disaster: Severe storms, and flooding
Date Disaster Occurred or Began: December 21, 1990-January 16, 1991

Alaska

Borough of Fairbanks-North Star, and the Communities of Alakanuk, Aniak, Anvik, Emmonak, Galena, Grayling, Holy Cross, McGrath,
Red Devil, and Shageluk
Type of Disaster: Heavy snow, flooding, and ice jams
Date Disaster Occurred or Began: April 15-May 25, 1991

Arkansas

Counties of Ashley, Bradley, Chicot, Cleveland, Columbia, Dallas, Desha, Fulton, Izard, Lafayette, Lee, Little River, Madison, Nevada, Ouachita, Polk, Scott, Sharp, Stone, Union, and Van Buren
Type of Disaster: Severe storms, and flooding
Date Disaster Occurred or Began: April 12-May 11, 1991

California

Counties of Alameda, Butte, Colusa, Fresno, Glenn, Imperial, Kern, Los Angeles, Madera, Marin, Mendocino, Merced, Monterey, Napa, Riverside, San Benito, San Bernardino, San Diego, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo, and Yuba
Type of Disaster: Severe freeze
Date Disaster Occurred or Began: December 19, 1990-January 3, 1991

County of Alameda
Type of Disaster: Oakland Hills Fire
Date Disaster Occurred or Began: October 20-29, 1991

Connecticut
Counties of Hartford, Middlesex, New Haven, New London, Tolland, and Windham
Type of Disaster: Hurricane Bob
Date Disaster Occurred or Began: August 19, 1991

Georgia

Counties of Appling, Atkinson, Bacon, Berrien, Brooks, Clinch, Coffee, Jeff Davis, Johnson, Lanier, Laurens, Lowndes, Pierce, Thomas, and Ware
Type of Disaster: Severe storms, and flooding
Date Disaster Occurred or Began: March 1-21, 1991

Guam

Territory of Guam
Type of Disaster: Typhoon Yuri
Date Disaster Occurred or Began: November 27-28, 1991

Hawaii

State of Hawaii
Type of Disaster: Lava flows from the Kilauea volcano
Date Disaster Occurred or Began: January 24, 1990-(Continuing)

Indiana

Counties of Adams, Allen, Bartholomew, Benton, Blackford, Boone, Brown, Carroll, Clark, Clinton, Daviess, Dearborn, Decatur, De Kalb, Delaware, Elkhart, Fayette, Floyd, Fountain, Franklin, Fulton, Gibson, Grant, Greene, Hamilton, Hancock, Harrison, Henry, Howard, Huntington, Jasper, Jay, Jefferson, Jennings, Johnson, Knox, Kosciusko, Lake, LaPorte, Madison, Marion, Marshall, Martin, Miami, Monroe, Montgomery, Morgan, Newton, Noble, Owen, Parke, Perry, Pike, Porter, Posey, Pulaski, Randolph, Rush, Scott, Shelby, Spencer, Starke, Steuben, St. Joseph, Sullivan, Switzerland, Tippecanoe, Tipton, Vanderburgh, Vermillion, Vigo, Warren, and Wells
Type of Disaster: Severe storms, and flooding
Date Disaster Occurred or Began: December 28, 1990-January 22, 1991

Counties of Benton, Boone, Blackford, Carroll, Cass, Clinton, Delaware, Fayette, Grant, Hamilton, Hancock, Henry, Howard, Jasper, Madison, Miami, Montgomery, Newton, Randolph, Tippecanoe, Tipton, Union, Warren, Wayne, Wells, and White
Type of Disaster: Severe ice storm
Date Disaster Occurred or Began: March 12-15, 1991

Iowa

Counties of Black Hawk, Bremer, Butler, Cass, Chickasaw, Clayton, Emmet, Fayette, Greene, Hamilton, Hancock, Johnson, Kossuth, Marshall, Story, and Tama
Type of Disaster: Severe storms, and flooding
Date Disaster Occurred or Began: June 1-15, 1991

Kansas

Counties of Butler, Cowley, Jefferson, Sedgwick, Wabaunsee, and Washington
Type of Disaster: Severe storms, and tornadoes
Date Disaster Occurred or Began: April 26-May 19, 1991

Kentucky

Counties of Boyd, Breathitt, Carroll, Casey, Fulton, Jackson, Johnson, Lawrence, Lee, Lewis, Livingston, Magoffin, McCracken, Owsley, Perry, Rockcastle, Trimble, Wayne, and Wolfe
Type of Disaster: Severe storms, and flooding
Date Disaster Occurred or Began: December 6, 1990-February 2, 1991

Louisiana

Parishes of Bienville, Beauregard, Bossier, Caddo, Catahoula, Claiborne, DeSota, Lafourche, Morehouse, Natchitoches, Ouachita, Rapides, Terrebonne, Webster, and West Carroll
Type of Disaster: Severe storms, and flooding
Date Disaster Occurred or Began: April 12-26, 1991

Parishes of Assumption, Avoyelles, Beauregard, Bienville, Bossier, Caddo, Caldwell, Catahoula, Claiborne, Concordia, East Carroll, Franklin, Grant, Iberville, Jackson, Lafourche, La Salle, Lincoln, Livingston, Madison, Morehouse, Natchitoches, Ouachita, Rapides, Red River, Richland, St. Charles, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tensas, Terrebonne, Union, Webster, West Carroll, and Winn
Type of Disaster: Severe storms, tornadoes, and flooding
Date Disaster Occurred or Began: April 27-May 31, 1991

Maine

Counties of Arrostook
Type of Disaster: Severe storms, ice jams, and flooding
Date Disaster Occurred or Began: April 6-24, 1991

Counties of Androscoggin, Cumberland, Franklin, Kennebec, Knox, Lincoln, Oxford, Sagadahoc, and York
Type of Disaster: Hurricane Bob, and flooding
Date Disaster Occurred or Began: August 18-21, 1991

York County
Type of Disaster: Coastal storm
Date Disaster Occurred or Began: October 30-November 2, 1991

Massachusetts

Counties of Barnstable, Bristol, Dukes, Essex, Hampden, Middlesex, Nantucket, Norfolk, Plymouth, Suffolk, and Worcester
Type of Disaster: Hurricane Bob
Date Disaster Occurred or Began: August 19, 1991

Counties of Barnstable, Dukes, Essex, Nantucket, Norfolk, Plymouth, and Suffolk
Type of Disaster: Coastal storm
Date Disaster Occurred or Began: October 30-November 2, 1991

Marshall Islands, Republic of the Islands of Ebeye Island, Kwajalein Atoll, Lae Atoll, and Vjae Atoll
Type of Disaster: Typhoon Zelda
Date Disaster Occurred or Began: November 28-29, 1991

Mississippi

Counties of Carroll, Clay, Harrison, Humphreys, Itawamba, Leflore, Lowndes, Madison, Monroe, Simpson, Warren, and Webster
Type of Disaster: Severe storms, tornadoes, and flooding
Date Disaster Occurred or Began: December 19, 1990-January 14, 1991

Counties of Adams, Bolivar, Calhoun, Clay, Coahoma, Grenada, Itawamba, Leflore, Lowndes, Monroe, Panola, Quitman, Simpson, Sunflower, Tallahatchie, Tishomingo, Washington, and Yalobusha
Type of Disaster: Severe storms, and flooding
Date Disaster Occurred or Began: February 17-March 21, 1991

Counties of Alcorn, Benton, Bolivar, Calhoun, Carroll, Chicakasaw, Choctaw, Claiborne, Clay, Coahoma, George, Grenada, Hancock, Harrison, Holmes, Humphreys, Issaquena, Itawamba, Lee, Leflore, Lowndes, Madison, Marshall, Monroe, Oktibbeha, Panola, Pearl River, Pontotoc, Prentiss, Quitman, Sharkey, Sunflower, Tallahatchie, Tate, Tippah, Tishomingo, Union, Warren, Washington, Webster, Yalobusha, and Yazoo
Type of Disaster: Severe storms, tornadoes, and flooding
Date Disaster Occurred or Began: April 26-May 31, 1991

Nebraska

Counties of Colfax, Cuming, Dawes, Dodge, Madison, Sioux, and Stanton
Type of Disaster: Severe storms, and flooding
Date Disaster Occurred or Began: May 10-June 15, 1991

New Hampshire

Counties of Carroll, Hillsborough, Rockingham, and Stafford
Type of Disaster: Hurricane Bob and severe storms
Date Disaster Occurred or Began: August 18-20, 1991

Rockingham County
Type of Disaster: Coastal storm
Date Disaster Occurred or Began: October 30-31, 1991

New York

Counties of Allegheny, Genesee, Jefferson, Lewis, Livingston, Monroe, Ontario, Orleans, St. Lawrence, Steuben, Wayne, Wyoming, and Yates
Type of Disaster: Severe winter storm
Date Disaster Occurred or Began: March 3-4, 1991

Suffolk County
Type of Disaster: Hurricane Bob
Date Disaster Occurred or Began: August 19, 1991

Oklahoma

Counties of Garfield, Noble, Osage, Pawnee, Rogers, and Washington
Type of Disaster: Severe storms, and tornadoes
Date Disaster Occurred or Began: April 26-27, 1991

Rhode Island

Counties of Bristol, Kent, Newport, Providence, and Washington
Type of Disaster: Hurricane Bob
Date Disaster Occurred or Began: August 19, 1991

Tennessee

Counties of Anderson, Bedford, Bledsoe, Coffee, Cumberland, Dyer, Fentress, Franklin, Gibson, Grundy, Hardin, Jackson, Lauderdale, Lincoln, Marion, Morgan, Obion, Polk, Roane, Rhea, Van Buren, and Warren
Type of Disaster: Severe storms, and flooding
Date Disaster Occurred or Began: December 19, 1990-January 14, 1991

Counties of Cheatham, Dickson, Hardin, Hickman, Humphreys, Lawrence, Lewis, Perry, and Wayne
Type of Disaster: Severe storms, and flooding
Date Disaster Occurred or Began: May 24-June 26, 1991

Texas

Counties of Brazoria, Cameron, Jackson, Victoria, and Willacy
Type of Disaster: Severe storms, tornadoes, and flooding
Date Disaster Occurred or Began: April 5-6, 1991

Washington

Counties of Ferry, Spokane, Stevens, Lincoln, Pend Oreille, and Whitman
Type of Disaster: Fire
Date Disaster Occurred or Began: October 16-24, 1991

Wisconsin

Counties of Dane, Jefferson, Ozaukee, Washington, and Waukesha
Type of Disaster: Severe storms, wind, and hail
Date Disaster Occurred or Began: July 7, 1991

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. 91-69, 1991-2 C.B. 39, 1991-52 I.R.B. 5.