Internal Revenue Service
Revenue Ruling

TaxLinks.com   sm

Rev. Rul. 2002-11, 2002-10 I.R.B. 608

Internal Revenue Service (I.R.S.)

Revenue Ruling

ELECTION IN RESPECT OF LOSSES ATTRIBUTABLE TO A DISASTER

Published: March 11, 2002

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 or emergency areas during 2001 under the Disaster Relief and Emergency Assistance Act.

  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) (the Act), 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. For purposes of § 165(i), a disaster includes an event declared a major disaster or an emergency under the Act.

  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 2001 the areas listed below have been adversely affected by disasters of sufficient severity and magnitude to warrant assistance by the Federal Government under the Act.

  A list of the areas warranting assistance under the Act is available at the Federal Emergency Management Agency Internet site at www.fema.gov. Accordingly, the Internal Revenue Service requests comments regarding the need for future publication of this revenue ruling. Comments should be submitted by May 1, 2002, either to:

    Internal Revenue Service

    P. O. Box 7604

    Ben Franklin Station

    Washington, DC 20044

    Attn: CC:PA:T:CRU (ITA)

    Room 5041 or electronically via the Service internet site at: Notice.Comments @irscounsel.treas.gov (the Service comments e-mail address). All comments will be available for public inspection and copying.

FURTHER INFORMATION

  For further information regarding this revenue ruling, contact James Roy at (202) 622-4950 (not a toll-free call).

  

-------------------------------------------------------------------------------
Disaster Area                                         Disaster       Disaster  
                                                        Description    Date    
                                                                                
Alabama                                                                        
                                                                                
Counties of Blount, Fayette, Jefferson, Lamar,        FEMA-1362-DR   February  
  Tuscaloosa, and Walker                                Severe         16-17    
                                                        storms and              
                                                        flooding                
                                                                                
Counties of Autauga, Blount, Butler, Calhoun,         FEMA-1399-DR   November  
  Cherokee, Clay, Dale, DeKalb, Etowah, Fayette,        Severe         24-Dece-
  Jefferson, Lamar, Lawrence, Madison, Marion,          storms and     mber 12  
  Marshall, St. Clair, Talladega, and Winston           tornadoes              
                                                                                
Arkansas                                                                        
                                                                                
Counties of Bradley, Clark, Cleveland, Columbia,      FEMA-1363-DR   February  
  Conway, Craighead, Dallas, Drew, Franklin,            Severe         14-March
  Hempstead, Hot Spring, Lafayette, Lincoln, Little     storms and     21      
  River, Miller, Nevada, Newton, Ouachita, Polk,        flooding                
  Prairie, Union, and White                                                    
                                                                                
Colorado                                                                        
                                                                                
Counties of Baca, Bent, Cheyenne, Crowley, Kiowa,     FEMA-1374-DR   April      
  Lincoln, Logan, Morgan, Phillips, Prowers,            Severe         11-22    
  Sedgwick, Washington, Weld, and Yuma                  storms                  
                                                                                
District of Columbia                                                            
                                                                                
All                                                   FEMA-1389-DR   August    
                                                        Flooding       10-12    
                                                                                
Florida                                                                        
                                                                                
Counties of Alachua, Baker, Bradford, Brevard,        FEMA-1359-DR   December  
  Broward, Charlotte, Citrus, Clay, Collier,            Severe         1, 2000-
  Columbia, DeSoto, Dixie, Duval, Flagler,              freeze         -January
  Gilchrist, Glades, Hamilton, Hardee, Hendry,                         25, 2001
  Hernando, Highlands, Hillsborough, Indian River,                              
  Lafayette, Lake, Lee, Levy, Manatee, Marion,                                  
  Martin, Miami-Dade, Monroe, Nassau, Okeechobee,                              
  Orange, Osceola, Palm Beach, Pasco, Pinellas,                                
  Polk, Putnam, Sarasota, Seminole, St. Johns, St.                              
  Lucie, Sumter, Suwannee, Union, and Volusia                                  
                                                                                
Counties of Bay, Calhoun, Gadsden, Holmes,            FEMA-1381-DR   June 11-15
  Jefferson, Leon, Liberty, Wakulla, and Washington     Tropical                
                                                        Storm                  
                                                        Allison                
                                                                                
Counties of Charlotte, Collier, DeSoto, Flagler,      FEMA-1393-DR   September  
  Hardee, Highlands, Lee, Manatee, Putnam, St.          Tropical       13-21    
  Johns, and Sarasota                                   Storm                  
                                                        Gabrielle              
                                                                                
Guam                                                                            
                                                                                
All                                                   FEMA-1397-DR   October 13
                                                        Earthquake              
                                                                                
Illinois                                                                        
                                                                                
Counties of Adams, Calhoun, Carroll, Hancock,         FEMA-1368-DR   April      
  Henderson, Jo Daviess, Mercer, Pike, Rock Island,     Flooding       18-May  
  and Whiteside                                                        29      
                                                                                
Iowa                                                                            
                                                                                
Counties of Allamakee, Buchanan, Calhoun, Clayton,    FEMA-1367-DR   April      
  Clinton, Des Moines, Dubuque, Grundy, Henry,          Severe         8-May 29
  Humboldt, Jackson, Lee, Louisa, Lucas, Muscatine,     storms and              
  Palo Alto, Pottawattamie, Ringgold, Sac, Scott,       flooding                
  Union, Wapello, and Webster                                                  
                                                                                
Kansas                                                                          
                                                                                
County of Barton                                      FEMA-1366-DR   April      
                                                        Severe         21-May 1
                                                        storms and              
                                                        tornado                
                                                                                
Kentucky                                                                        
                                                                                
Counties of Bath, Clay, Elliot, Estill, Floyd,        FEMA-1388-DR   July 27-A-
  Harrison, Johnson, Knott, Lawrence, Letcher,          Severe         ugust 23
  Lewis, Livingston, Mason, Menifee, Perry, Pike,       storms and              
  Powell, Rockcastle, Rowan, and Whitley                flooding                
                                                                                
Louisiana                                                                      
                                                                                
Parishes of Bienville, Bossier, Caddo, Claiborne,     FEMA-1357-DR   December  
  Lincoln, Ouachita, Union, and Webster                 Severe         11, 200-
                                                        winter         0-Janua-
                                                        storm          ry 3,    
                                                                       2001    
                                                                                
Parishes of Ascension, Assumption, Beauregard, East   FEMA-1380-DR   June 5-22  
  Baton Rouge, East Feliciana Parish, Iberia,           Tropical                
  Iberville, Jefferson, Lafayette, Lafourche,           Storm                  
  Livingston, Orleans, Pointe Coupee, St. Bernard,      Allison                
  St. Charles, Saint Helena, St. James, St. John the                            
  Baptist, St. Martin, St. Mary, St. Tammany,                                  
  Tangipahoa, Terrebonne, Vermillion, Washington,                              
  West Baton Rouge, and West Feliciana                                          
                                                                                
Maine                                                                          
                                                                                
Counties of Franklin, Kennebec, Oxford, Penobscot,    FEMA-1371-DR   March 5-31
  Washington, and York                                  Severe                  
                                                        storms and              
                                                        flooding                
                                                                                
Counties of Androscoggin, Aroostook, Cumberland,      FEMA-3164-EM   March 5-31
  Franklin, Hancock, Lincoln, Oxford, Penobscot,        Severe                  
  Piscoataquis, Sagadahoc, Somerset, Washington, and    winter                  
  York                                                  storm                  
                                                                                
Massachusetts                                                                  
                                                                                
Counties of Berkshire, Essex, Franklin, Hampshire,    FEMA-3165-EM   March 5-7  
  Middlesex, Norfolk, and Worcester                     Snowstorm              
                                                                                
Counties of Bristol, Essex, Middlesex, Norfolk,       FEMA-1364-DR   March      
  Plymouth, Suffolk, and Worcester                      Severe         5-April  
                                                        storms and     16      
                                                        flooding                
                                                                                
Minnesota                                                                      
                                                                                
Counties of Aitkin, Anoka, Beltrami, Benton, Big      FEMA-1370-DR   March      
  Stone, Brown, Carlton, Carver, Chippewa, Chisago,     Flooding       23-July  
  Clay, Clearwater, Crow Wing, Dakota, Dodge,                          3        
  Douglas, Faribault, Freeborn, Grant, Goodhue,                                
  Hennepin, Houston, Isanti, Kanabec, Kandiyohi,                                
  Kittson, Koochiching Olmstead, Lac qui Parle, Lake                            
  of Woods, McLeod, Meeker, Mille Lacs, Morrison,                              
  Mower, Nicollet, Noble, Norman, Otter Tail, Pine,                            
  Polk, Ramsey, Red Lake, Redwood, Renville, Rice,                              
  Roseau, Scott, Sibley, St. Louis, Stearns,                                    
  Stevens, Swift, Todd, Traverse, Wabasha,                                      
  Washington, Wilkin, Winona, Wright, and Yellow                                
  Medicine; Fond du Lac Indian Reservation, Mille                              
  Lacs Indian Reservation, Red Lake Indian                                      
  Reservation, and White Earth Indian Reservation;                              
  and Tribal Governments of Prairie Island and Upper                            
  Sioux                                                                        
                                                                                
Mississippi                                                                    
                                                                                
Counties of Amite, Alcorn, Attala, Bolivar, Calhoun,  FEMA-1360-DR   February  
  Carroll, Chickasaw, Choctaw, Clay, Coahoma,           Tornadoes      16      
  Forrest, Franklin, Grenada, Holmes, Humphreys,        and severe              
  Itawamba, Jones, Lafayette, Lamar, Lee, Leflore,      storms                  
  Lincoln, Lowndes, Madison, Marion, Monroe,                                    
  Neshoba, Noxubee, Oktibbeha, Panola, Pearl River,                            
  Perry, Pike, Pontotoc, Prentiss, Quitman, Scott,                              
  Sunflower, Tallahatchie, Tate, Tippah, Tishomingo,                            
  Union, Walthall, Washington, Webster, Wilkinson,                              
  Winston, Yalobusha, and Yazoo                                                
                                                                                
Counties of Attala, Holmes, Leake, Lee, Neshoba, and  FEMA-1365-DR   April 3-5  
  Pontotoc                                              Severe                  
                                                        storms and              
                                                        flooding                
                                                                                
Counties of George, Hancock, Harrison, Jackson, and   FEMA-1382-DR   June 6-13  
  Pearl River                                           Tropical                
                                                        Storm                  
                                                        Allison                
                                                                                
Counties of Benton, Bolivar, Coahoma, DeSoto,         FEMA-1398-DR   November  
  Grenada, Hinds, Humphreys, Lafayette, Leake,          Severe         24-25    
  Marshall, Madison, Panola, Prentiss, Quitman,         storms and              
  Scott, Sunflower, Tallahatchie, Tate, Tippah,         tornadoes              
  Tunica, and Washington                                                        
                                                                                
Montana                                                                        
                                                                                
County of Big Horn and Crow Indian Reservation        FEMA-1377-DR   April 8-9  
                                                        Severe                  
                                                        storms                  
                                                                                
Counties of Gallatin, Missoula, and Powell            FEMA-1385-DR   June 3-14  
                                                        Severe                  
                                                        storms                  
                                                                                
Nebraska                                                                        
                                                                                
Counties of Banner, Blaine, Box Butte, Brown, Chase,  FEMA-1373-DR   April      
  Cherry, Cheyenne, Custer, Deuel, Dundy, Gage,         Severe         10-23    
  Garden, Hayes, Hooker, Johnson, Keith, Keya Paha,     storms                  
  Kimball, Lincoln, Logan, McPherson, Morrill,                                  
  Nuckolls, Perkins, Rock, Saline, Sioux, and Thomas                            
                                                                                
Dakota County                                         FEMA-1394-DR   August    
                                                        Severe         17-18    
                                                        storms and              
                                                        flooding                
                                                                                
New Hampshire                                                                  
                                                                                
Counties of Cheshire, Coos, Grafton, Hillsborough,    FEMA-3166-EM   March 5-7  
  Merrimack, Rockingham, and Strafford                  Snowstorm              
                                                                                
New Jersey                                                                      
                                                                                
All counties                                          FEMA-3169-EM   September  
                                                        Terrorist      11      
                                                        attack                  
                                                                                
New York                                                                        
                                                                                
Counties of Albany, Allegany, Bronx, Broome,          FEMA-1391-DR   September  
  Cattaraugus, Cayuga, Chautauqua, Chemung,             Terrorist      11      
  Chenango, Clinton, Columbia, Cortland, Delaware,      attack                  
  Dutchess, Erie, Essex, Franklin, Fulton, Genesee,                            
  Greene, Hamilton, Herkimer, Jefferson, Kings,                                
  Lewis, Livingston, Madison, Monroe, Montgomery,                              
  Nassau, New York, Niagara, Oneida, Onondaga,                                  
  Ontario, Orange, Orleans, Oswego, Otsego, Putnam,                            
  Queens, Rensselaer, Richmond, Rockland, Saratoga,                            
  Schenectady, Schoharie, Schuyler, Seneca, St.                                
  Lawrence, Steuben, Suffolk, Sullivan, Tioga,                                  
  Tompkins, Ulster, Warren, Washington, Wayne,                                  
  Westchester, Wyoming, and Yates                                              
                                                                                
North Dakota                                                                    
                                                                                
Counties of Adams, Barnes, Benson, Bottineau,         FEMA-1376-DR   March      
  Burleigh, Cass, Cavalier, Dickey, Eddy, Foster,       Floods         1-August
  Golden Valley, Grand Forks, Grant, Griggs, Kidder,                   9        
  La Moure, Logan, McHenry, McLean, Morton,                                    
  Mountrail, Nelson, Pembina, Pierce, Ramsey,                                  
  Ransom, Richland, Rolette, Sargent, Sheridan,                                
  Steele, Stutsman, Towner, Traill, Walsh, and                                  
  Wells; and Indian Reservations of the Spirit Lake                            
  Tribe and of the Turtle Mountain Band of Chippewa                            
                                                                                
Ohio                                                                            
                                                                                
Counties of Brown, Butler, Clermont, and Hamilton     FEMA-1390-DR   July 17-18
                                                        Severe                  
                                                        storms and              
                                                        flooding                
                                                                                
Oklahoma                                                                        
                                                                                
Counties of Adair, Atoka, Beckham, Blaine, Bryan,     FEMA-1355-DR   December  
  Caddo, Canadian, Carter, Cherokee, Choctaw,           Severe         25, 200-
  Cleveland, Coal, Comanche, Cotton, Craig, Creek,      winter         0-Janua-
  Custer, Delaware, Garfield, Garvin, Grady, Greer,     storm          ry 10,  
  Harmon, Haskell, Hughes, Jackson, Jefferson,                         2001    
  Johnston, Kay, Kingfisher, Kiowa, Latimer,                                    
  LeFlore, Lincoln, Logan, Love, Lowe, Marshall,                                
  Mayes, McClain, McCurtain, McIntosh, Murray,                                  
  Muskogee, Nowata, Ofuskee, Oklahoma, Okmulgee,                                
  Osage, Ottawa, Pawnee, Payne, Pittsburg, Pontotoc,                            
  Pottawatomie, Pushmataha, Roger Mills, Rogers,                                
  Seminole, Sequoyah, Stephens, Tillman, Tulsa,                                
  Wagoner, Washington, and Washita                                              
                                                                                
Counties of Alfalfa, Atoka, Beaver, Beckham, Blaine,  FEMA-1384-DR   May 27-30  
  Bryan, Caddo, Canadian, Carter, Choctaw, Cimarron,    Severe                  
  Coal, Comanche, Cotton, Custer, Dewey, Ellis,         storms                  
  Garfield, Garvin, Grady, Harper, Haskell, Jackson,                            
  Jefferson, Johnston, Kingfisher, Kiowa, Latimer,                              
  LeFlore, Love, Major, Marshall, McClain,                                      
  McCurtain, Murray, Muskogee, Okfuskee, Oklahoma,                              
  Okmulgee, Payne, Pittsburg, Pushmataha, Roger                                
  Mills, Stephens, Texas, Tillman, Washita, and                                
  Woodward                                                                      
                                                                                
County of Washita                                     FEMA-1395-DR   October    
                                                        Severe         9-10    
                                                        storms and              
                                                        flooding                
                                                                                
Pennsylvania                                                                    
                                                                                
Counties of Bucks and Montgomery                      FEMA-1383-DR   June 15-17
                                                        Tropical                
                                                        Storm                  
                                                        Allison                
                                                                                
Puerto Rico                                                                    
                                                                                
Municipalities of Adjuntas, Anasco, Cabo Rojo,       FEMA-1372-DR   May 6-11  
  Guanica, Guayanilla, Hormigueros, Lajas, Lares,      Flooding                
  Las Marias, Maricao, Moca, Rincon, Sabana Grande,                            
  San German, and Yauco                                                        
                                                                                
Municipalities of Aguas Buenas, Barranquitas,         FEMA-1396-DR   November  
  Bayamon, Ciales, Corozal, Jayuya, Juncos, Morovis,    Severe         7-9      
  Naranjito, Orocovis, San Lorenzo, Utuado, and Vega    storms and              
  Alta                                                  flooding                
                                                                                
South Dakota                                                                    
                                                                                
Counties of Beadle, Brookings, Brown, Buffalo,        FEMA-1375-DR   March      
  Clark, Codington, Day, Deuel, Edmunds, Grant,         Severe         1-April  
  Gregory, Hamlin, Hanson, Jerauld, Kingsbury,          storms         30      
  Marshall, Mellette, Moody, Roberts, Sanborn,                                  
  Spink, Todd, Tripp, and Turner                                                
                                                                                
Tennessee                                                                      
                                                                                
Counties of Carter, Cocke, Greene, Johnson, Shelby,   FEMA-1387-DR   July 27-A-
  Unicoi, and Washington                                Severe         ugust 22
                                                        storms and              
                                                        flooding                
                                                                                
Texas                                                                          
                                                                                
Counties of Armstrong, Bailey, Bowie, Borden,         FEMA-1356-DR   December  
  Briscoe, Carson, Cass, Cherokee, Cooke, Crosby,       Severe         12, 200-
  Dawson, Deaf Smith, Delta, Fannin, Floyd,             winter         0-Janua-
  Franklin, Gains, Garza, Gray, Grayson, Gregg,         storm          ry 15,  
  Hall, Harrison, Hemphill, Hopkins, Hunt, Lamar,                      2001    
  Lynn, Marion, Montague, Morris, Nacogdoches,                                  
  Oldham, Panola, Parmer, Potter, Rains, Randall,                              
  Red River, Rusk, San Augustine, Shelby, Smith,                                
  Titus, Upshur, and Wood                                                      
                                                                                
Counties of Anderson, Angelina, Brazoria, Cherokee,   FEMA-1379-DR   June      
  Chambers, Fort Bend, Galveston, Grimes, Hardin,       Severe         5-July  
  Harris, Harrison, Houston, Jasper, Jefferson,         storms and     20      
  Leon, Liberty, Madison, Montgomery, Nacogdoches,      flooding                
  Newton, Orange, Polk, Sabine, San Augustine, San                              
  Jacinto, Shelby, Smith, Trinity, Tyler, Walker,                              
  and Waller                                                                    
                                                                                
Vermont                                                                        
                                                                                
Counties of Addison, Bennington, Chittenden, Grand    FEMA-3167-EM   March 5-7  
  Isle, Lamoille, Orleans, Rutland, Windham, and        Snowstorm              
  Windsor                                                                      
                                                                                
Virginia                                                                        
                                                                                
Counties of Bath, Buchanan, Dickenson, Lee, Russell,  FEMA-1386-DR   July      
  Scott, Smyth, Tazewell, Washington, and Wise          Severe         8-August
                                                        storms and     27      
                                                        flooding                
                                                                                
County of Arlington                                   FEMA-1392-DR   September  
                                                        Terrorist      11      
                                                        attack                  
                                                                                
Washington                                                                      
                                                                                
Counties of Benton, Chelan, Clallam, Clark, Cowlitz,  FEMA-1361-DR   February  
  Grays Harbor, Island, Jefferson, King, Kitsap,        Earthquake     28-March
  Kittitas, Lewis, Mason, Pacific, Pierce, Skagit,                     16      
  Skamania, Snohomish, Thurston, Wahkiakum, Whatcom,                            
  and Yakima                                                                    
                                                                                
West Virginia                                                                  
                                                                                
Counties of Boone, Cabell, Calhoun, Clay, Doddridge,  FEMA-1378-DR   May 15-Se-
  Fayette, Greenbrier, Kanawha, Lincoln, Logan,         Severe         ptember  
  Marion, Mason, McDowell, Mercer, Mingo, Nicholas,     storms and     4        
  Preston, Putnam, Raleigh, Roane, Summers, Taylor,     flooding                
  Wayne, and Wyoming                                                            
                                                                                
Wisconsin                                                                      
                                                                                
Counties of Adams, Ashland, Barron, Bayfield,         FEMA-1369-DR   April      
  Buffalo, Burnett, Calumet, Chippewa, Clark,           Flooding       10-July  
  Crawford, Douglas, Dunn, Grant, Iron, Jackson,                       6        
  Juneau, La Crosse, Outagamie, Pepin, Pierce, Polk,                            
  Portage, Rusk, St. Croix, Taylor, Trempealeau,                                
  Vernon, Washburn, Waupaca, Waushara, Winnebago,                              
  and Wood                                                                      
  
Rev. Rul. 2002-11, 2002-10 I.R.B. 608