REVENUE RULE 94-14

1994-1 C.B. 72, 1994-9 I.R.B. 38.

Internal Revenue Service
Revenue Ruling

ELECTION IN RESPECT OF LOSSES ATTRIBUTABLE TO A DISASTER

Published: February 28, 1994

Section 165.--Losses, 26 CFR 1.165-11: Election in respect of losses attributable to a disaster.
Election in respect of losses attributable to a disaster. This ruling lists the areas declared by the President to qualify as major disaster areas since the publication of Rev.Rul. 92-111 under the Disaster Relief and Emergency Assistance Act.

Under s 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 (the Act), as amended, 42 U.S.C. s 5121 et seq. (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(e) 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 s 165(i) apply only to losses that are otherwise deductible under s 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 s 165(c)(3).

From the cutoff date of December 3, 1992, specified in Rev.Rul. 92-111, 1992- 2 C.B. 58, through December 31, 1993, the President determined that the areas listed below have been adversely affected by disasters of sufficient severity to warrant disaster assistance by the Federal Government under the Act.

DRAFTING INFORMATION

The principal author of this revenue ruling is Sheldon A. Iskow of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Iskow on (202) 622-4920 (not a toll- free call).

Disaster Areas in 1993

Rev. Rul. 94-14, 1994-1 C.B. 72, 1994-9 I.R.B. 38.