Rev. Rul. 98-12, 1998-10 I.R.B. 5.
INTERNAL REVENUE SERVICE
Revenue Ruling
ELECTION IN RESPECT OF LOSSES ATTRIBUTABLE TO A DISASTER
Published: March 9, 1998
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 under the Disaster Relief and Emergency Assistance Act since the publication of Rev. Rul. 97-11.
Under § 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, 42 U.S.C. §§5121- 5204c (1988 & Supp. V 1993) (Act), the taxpayer may elect in 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 a disaster loss for the preceding year must be made by filing a return, an amended return, or a claim for refund on or before the later of (1) the due date of the taxpayer's income tax return (determined without regard to any extension of time to file the return) for the taxable year in which the disaster actually occurred, or (2) the due date of the taxpayer's income tax return (determined with regard to any extension of time to file the return) for the taxable year immediately preceding the taxable year in which the disaster actually occurred.
The provisions of § 165(i) apply only to losses that are otherwise deductible under § 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 § 165(c)(3).
The President has determined that during 1997 the areas listed below have been adversely affected by disasters of sufficient severity and magnitude in warrant assistance by the Federal Government under the Act.
DRAFTING INFORMATION
The principal author of this revenue ruling is Jonathan Strum of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Strum on (202) 622-4960 (not a toll- free call).
| Disaster Areas in 1997 | Type of Disaster | Date of Disaster |
| Alabama Counties of Baldwin, Choctaw, and Mobile |
Severe Storms, Flooding and High Winds Associated with Hurricane Danny | July 17-22, 1997 |
| Arkansas Counties of Baxter, Clark, Clay, Conway, Craighead, Cross, Greene, Hempstead, Hot Spring, Independence, Jackson, Jefferson, Lawrence, Lee, Lincoln, Lonoke, Mississippi, Nevada, Newton, Poinsett, Pope, Pulaski, Saline, White, and Woodruff |
Severe Storms and Tornadoes | March 1-4, 1997 |
| Arkansas Counties of Bradley, Clay, Cleburne, Cleveland, Columbia, Craighead, Dallas,Drew, Faulkner, Grant,Greene, Izard, Jackson, Jefferson, Lafayette, Lincoln, Lonoke, Monroe, Montgomery, Ouachita, Poinsett, Searcy, Sharp, St. Francis, Stone, Union, Van Buren, and White |
Severe Storms and Flooding | April 4-21, 1997 |
| California Counties of Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Lassen, Madera, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San Benito, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba; and the City of Morgan Hill |
Severe Storms, Flooding, and Mud and Land Slides | December 28, 1996-April 1, 1997 |
| Colorado Counties of Baca, Clear Creek, Crowley, Elbert, Kiowa, Larimer, Lincoln, Logan, Morgan, Otero, Phillips, Prowers, and Weld |
Severe Storms, Heavy Rains, Flash Floods, other flooding, mud and land slides, and severe ground saturation | July 28-Aug. 12, 1997 |
| Florida Counties of Citrus, Hernando, Hillsborough, Lake, Orange, Osceola, Pasco, Polk, and Sumter |
Severe Storms, High Winds, Tornadoes, and Flooding | Dec. 25, 1997-Jan. 14, 1998 |
| Guam Territory of Guam |
Typhoon Paka and associtated torrential rains, high winds, high surf, and tidal surges | Dec. 16-17, 1997 |
| Idaho Counties of Adams, Benewah, Boise, Bonner, Boundary, Camas, Clearwater, Elmore, Gem, Idaho, Koontenai, Latah, Nez Perce, Owyhee, Payette, Shoshone, Valley and Washington |
Severe Storms, Flooding, and mud and land slides | Nov. 16, 1996-Jan. 4, 1997 |
| Idaho Counties of Benewah, Bingham, Bonner, snowmelt, Bonneville, Boundary, Butte, Custer, Fremont, Jefferson, Kootenai, Madison, and Shoshone |
Severe Storms, Snowmelt, and mud and land slides | Mar. 14-June 30, 1997 |
| Illinois Counties of Alexander, Gallatin, Hardin, Massac, Pope, and Pulaski |
Severe Storms and Flooding | Mar. 1-April 1, 1997 |
| Illinois County of Cook |
Severe Thunder Storms and Flash Flooding | Aug. 16-17, 1997 |
| Indiana Counties of Clark, Crawford, Dearborn, Floyd, Harrison, Jefferson, Ohio, Perry, Posey, Spencer, Switzerland, Vanderburgh, and Warrick |
Severe Storms and Flooding | Feb. 28-Mar. 31, 1997 |
| Iowa Counties of Cass, Clarke, Iowa, Jasper, Madison, Mahaska, Marion, Mills, Polk, Pottawattamie, Poweshiek, Union, and Warren |
Severe Winter Storms | Oct. 26-28, 1997 |
| Kentucky Counties of Adair, Anderson, Ballard,Barren, Bath, Boone, Bourbon, Boyd, Boyle, Bracken, Breathitt, Breckinridge, Bullitt, Butler, Caldwell, Calloway, Campbell, Carlisle, Carroll, Carter, Casey, Christian, Clark, Clay, Crittenden, Daviess, Edmonson, Elliott, Estill, Fayette, Fleming, Floyd, Franklin, Fulton, Gallatin, Grant, Graves, Grayson, Green, Greenup, Hancock, Hardin, Harrison, Hart, Henderson, Henry, Hickman, Hopkins, Jefferson, Jessamine, Johnson, Kenton, Knott, Larue, Lawrence, Lee, Leslie, Letcher, Lewis, Livingston, Logan, Lyon, Magoffin, Marion, Marshall, Mason, McCracken, McLean, Meade, Menifee, Mercer, Metcalfe, Monroe, Montgomery, Morgan, Muhlenberg, Nelson, Nicholas, Ohio, Oldham, Owen, Pendleton, Perry, Pike, Powell, Robertson, Rowan, Russell, Scott, Shelby, Simpson, Spencer, Taylor, Todd, Trigg, Trimble, Union, Warren, Washington, Webster, and Woodford |
Severe Storms, Flooding and Tornadoes | Mar. 1-24, 1997 |
| Louisiana Counties of Calcasieu, Cameron, and Jefferson Davis |
Severe Ice Storm | Jan. 12-17, 1997 |
| Michigan Counties of Genesee, Macomb, Oakland, Saginaw, and Wayne |
Severe Storms, tornadoes, and flooding | July 2, 1997 |
| Micronesia Yap Proper, Ulithi Atoll, and Ngula Atoll of Yap State |
Typhoon Fern | Dec. 25-26, 1996 |
| Minnesota Counties of Becker, Beltrami, Benton, Big Stone, Blue Earth, Brown, Chippewa, Clay, Clearwater, Cottonwood, Douglas, Faribault, Grant, Hubbard, Jackson, Kandiyohi, Kittson, Lac Qui Parle, Lake of the Woods, Le Sueur, Lincoln, Lyon, Mahnomen, Marshall, Martin, McLeod, Meeker, Murray, Nicollet, Nobles, Norman, Otter Tail, Pennington, Pipestone, Polk, Pope, Red Lake, Redwood, Renville, Rock, Roseau, Sherburne, Sibley, Stearns, Steele, Stevens, Swift, Todd, Traverse, Wadena, Waseca, Watonwan, Wilkin, Wright, and Yellow Medicine |
Severe Winter Storms | Jan. 3-Feb. 3, 1997 |
| Minnesota Counties of Aitkin, Anoka, Becker, Beltrami, Benton, Stone, Blue Earth, Brown, Carver, Cass, Chippewa, Clay, Clearwater, Dakota, Douglas, Goodhue, Grant, Hennepin, Houston, Hubbard, Kandiyohi, Kittson, Lac Qui Parle, Lake of the Woods, Le Sueur, Lincoln, Lyon, Mahnomen, Marshall, McLeod, Morrison, Murray, Nicollet,Norman, Otter Tail, Pennington, Polk, Pope, Ramsey, Red Lake, Redwood, Renville, Roseau, Scott, Sherburne, Sibley, St.Louis, Stearns, Stevens, Swift, Todd, Traverse, Wabasha, Wadena, Washington, Wilkin, Winona, Wright, and Yellow Medicine |
Severe Flooding, Severe Winter Storms, Big Snowmelt, High winds, rains, and ice | Mar. 21-May 24, 1997 |
| Minnesota Counties of Anoka, Hennepin, Isanti, Kandiyohi, Ramsey, Sherburne, and Wright |
Severe Storms, Floding, Tornadoes, and high winds | June 28-July 27, 1997 |
| Mississippi Counties of Bolivar, Tunica, Warren, Washington |
Flooding | Feb. 28-April 21, 1997 |
| Montana Counties of Broadwater, Carbon, Dawson, Deer Lodge, Flathead, Judith Basin, Lincoln, Madison, Meagher, Missoula, Musselshell, Park, Prairie, Ravalli, Richland, Roosevelt, Sanders, Stillwater, Sweet Grass, Treasure, Valley, Wheatland, Yellowstone and the Flathead Indian Reservation of the Confederated Salish and Kootenai Tribes |
Severe Storms, Ice Jams, Snowmelt, Flooding and Soil Saturation | Mar. 1-Aug. 6, 1997 |
| Nebraska Counties of Adams, Banner, Buffalo, Butler, Cass, Cheyenne, Clay, Custer, Dawson,Dodge, Douglas, Fillmore, Franklin, Frontier, Furnas, Gosper, Hall, Hamilton, Harlan, Hayes, Hitchcock, Kearney, Kimball, Lancaster, Lincoln, Nuckolls, Otoe, Phelps, Polk, Red Willow, Saline, Sarpy, Saunders, Scotts Bluff, Seward, Thayer, Washington, Webster, and York |
Severe Snow Storms, Rains, and Strong Winds | Oct. 24-26, 1997 |
| Nevada Counties of Churchill, Douglas, Lyon Mineral, Storey, and Washoe; and the City of Carson City; and the Walker River Paiute tribal lands located in Churchill, Lyon, and Mineral Counties |
Severe Storms, Flooding and mud and land slides | Dec. 20, 1996-Jan. 17, 1997 |
| New Jersey County of Atlantic |
Severe Storms and Flooding | Aug. 20-21, 1997 |
| North Dakota All Counties |
Major Winter Storm and Blizzard | Jan. 3-31, 1997 |
| North Dakota Counties of Adams, Barnes, Benson, Billings, Bottineau, Bowman, Burke, Burleigh, Cass, Cavalier, Dickey, Divide, Dunn, Eddy, Emmons, Foster, Golden Valley, Grand Forks, Grant, Griggs, Hettinger, Kidder, Lamoure, Logan, McHenry, McIntosh, McKenzie, McLean, Mercer, Morton, Mountrail, Nelson, Oliver, Pembina, Pierce, Ramsey, Ransom, Renville, Richland, Rolette, Sargent, Sheridan, Sioux, Slope, Stark, Steele, Stutsman, Towner, Traill, Walsh, Ward, Wells and Williams |
Severe Flooding, Severe Winter Storm, heavy spring rains and rapid snowmelt, high winds and ground saturation | Feb. 28-May 24, 1997 |
| Northern Marianas Islands of Rota, Saipan, and Tinian |
Super Typhoon Keith | Nov. 2-3, 1997 |
| Northern Marianas Island of Rota |
Typhoon Paka | Dec. 16-17, 1997 |
| Ohio Counties of Adams, Athens, Brown, Clermont, Gallia, Hamilton, Highland, Hocking, Jackson, Lawrence, Meigs, Monroe, Morgan, Pike, Ross, Scioto, Vinton and Washington |
Severe Storms and Flooding | Feb. 28-Mar. 17, 1997 |
| Oregon Counties of Baker, Coos, Douglas, Gilliam, Grant, Jackson, Josephine, Klamath, Lake, Lane, Morrow, Umatilla, Wallowa, and Wheeler |
Severe Winter Storms, Flooding and mud and land slides | Dec. 25, 1996-Jan. 6, 1997 |
| South Dakota Counties of Butte, Harding, Hutchinson, Lake, Meade, Minnehaha, Moody, Pennington, Perkins, and Turner |
Severe Winter Storm | Nov. 13-26, 1996 |
| South Dakota All Counties |
Severe Winter Storms and Blizzard | Jan. 3-31, 1997 |
| South Dakota Counties of Aurora, Beadle, Bennett, Bon Homme, Brookings, Brown, Brule, Buffalo, Butte, Campbell, Charles Mix, Clark, Clay, Codington, Corson, Custer, Davison, Day, Deuel, Dewey, Douglas, Edmunds, Fall River, Faulk, Grant, Gregory, Haakon, Hamlin, Hand, Hanson, Harding, Hughes, Hutchinson, Hyde, Jackson, Jerauld, Jones, Kingsbury, Lake, Lawrence, Lincoln, Lyman, Marshall, McCook, McPherson, Meade, Mellette, Miner, Minnehaha, Moody, Pennington, Perkins, Potter, Roberts, Sanborn, Shannon, Spink Stanley, Sully, Todd, Tripp, Turner, Union, Walworth, Yankton, and Ziebach |
Severe Flooding, Severe Winter Storms, heavy spring rains, rapid snowmelt, high winds and ice jams | Feb. 3-May 24, 1997 |
| Tennessee Counties of Benton, Carroll, Cheatham, Chester, Clay, Davidson, DeKalb, Decatur, Dickson, Dyer, Gibson, Grundy, Hardeman, Hardin, Henderson, Henry, Houston, Humphreys, Jackson, Lake, Lauderdale, Madison, McNairy, Montgomery, Obion, Shelby, Stewart, Sumner, Tipton, and Weakley |
Heavy Rains, tornadoes, flooding, hail and high winds | Feb. 28-Mar. 24, 1997 |
| Tennessee Counties of Bradley, Grundy, Hamilton, Polk, Sequatchie, and Smith |
Severe Storms and Tornadoes | Mar. 28-29, 1997 |
| Texas Counties of Bandera, Bexar, Blanco, Burnet, Comal, Eastland, Edwards, Gillespie, Goliad, Guadalupe, Hays, Kendall, Kerr, Kimble, Llano, Mason, Medina, Real, San Saba, Travis, and Uvalde |
Severe Thunderstorms and Flooding | June 21-July 15, 1997 |
| Vermont Counties of Caledonia, Franklin, Lamoille, Orleans, and Washington |
Excessive Rainfall, winds, and flooding | July 15-17, 1997 |
| Washington Counties of Adams, Asotin, Benton, Chelan, Clallam, Clark, Columbia, Cowlitz, Douglas, Ferry, Franklin, Garfield,Grant, Grays Harbor, Island, Jefferson, King, Kitsap, Kittitas, Klickitat, Lewis, Lincoln, Mason,Okanogan, Pacific, Pend Oreille, Pierce, San Juan, Skagit, Skamania, Snohomish, Spokane, Stevens, Thurston, Walla Walla, Whatcom, Whitman and Yakima |
Severe Winter Storms, Flooding, and mud and land slides | Dec, 26, 1996-Feb. 10, 1997 |
| Washington Counties of Clallam, Grays Harbor, Jefferson, King, Kitsap, Lincoln, Mason, Pacific, Pend Oreille, Snohomish, Spokane, Stevens, and Thurston |
Heavy Rains, Snow Melt, Flooding, and mud and land slides | Mar. 18-28, 1997 |
| Washington County of Pend Oreille |
Flooding and Snowmelt | April 10-June 30, 1997 |
| West Virginia Counties of Braxton, Cabell, Calhoun, Clay, Gilmer, Jackson, Kanawha, Lincoln, Mason, Putnam, Roane, Tyler, Wayne, Wetzel, Wirt, and Wood |
Heavy Rains, Wind Driven Rains, High winds, Flooding and slides | Feb. 28-Mar. 15, 1997 |
| Wisconsin Counties of Milwaukee, Ozaukee, Washington, and Waukesha |
Severe Storms and Flooding | June 21-23, 1997 |
Rev. Rul. 98-12, 1998-10 I.R.B. 5.