Internal Revenue Service
Revenue Ruling
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smRev. Rul. 2003-29
Rev. Rul. 2003-29, 2003-11 I.R.B. 587, 2003-1 C.B. 587
Internal Revenue Service (I.R.S.)
Revenue Ruling
ELECTION IN RESPECT OF LOSSES ATTRIBUTABLE TO A DISASTER
Released: February 26, 2003
Published: March 17, 2003
Section 139.--Disaster Relief Payments
Taxpayers are informed of the areas declared by the President to qualify as major disaster or emergency areas during 2002 under the Disaster Relief and Emergency Assistance Act.
Section 1033.--Involuntary Conversions, 26 CFR 1.1033-1: Involuntary conversions; nonrecognition of gain.
Taxpayers are informed of the areas declared by the President to qualify as major disaster or emergency areas during 2002 under the Disaster Relief and Emergency Assistance Act.
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 2002 under the Disaster Relief and Emergency Assistance Act.
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 2002 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, 42 U.S.C. ss 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 s 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 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).
A determination by the President that an area warrants assistance by the Federal Government under the Act is also relevant to s 139(a) (regarding the exclusion from gross income of certain qualified disaster relief payments) and s 1033(h) (regarding the deferral of gain realized upon the involuntary conversion of certain property).
The President has determined that, during 2002, 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 cumulative list of the areas warranting assistance each year under the Act (beginning in 1998) is available at the Federal Emergency Management Agency (FEMA) 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, 2003, 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 R. Roy at (202) 622-4950 (not a toll-free call).
Disaster Area Disaster Disaster
Description Date
Alabama
Counties of Baldwin and Mobile FEMA-1438-DR September
Tropical 23-Octo-
Storm ber 1
Isidore
Counties of Barbour, Bibb, Blount, Calhoun, FEMA-1442-DR November
Cherokee, Cleburne, Cullman, Dale, DeKalb, Etowah, Severe 5-12
Fayette, Franklin, Greene, Hale, Henry, Houston, Storms and
Jefferson, Lamar, Lawrence, Marion, Marshall, Tornadoes
Morgan, Pickens, Shelby, St. Clair, Talladega,
Tuscaloosa, Walker, and Winston
Alaska
Fairbanks North Star Borough, McGrath and Lime FEMA-1423-DR April
Village in the Iditarod Regional Education Flooding 27-May
Attendance Area (REAA), Aniak, Crooked Creek, Red 30
Devil, and Sleetmute in the Kuspuk REAA, Kwethluk
in the Lower Kuskokwim REAA, Alakanuk and Emmonak
in the Lower Yukon REAA, and Ekwok and Stuyahok in
the Southwest Region REAA.
Fairbanks North Star Borough, Denali Borough, FEMA-1440-DR November
Matanuska-Susitna Borough; the Regional Education Earthquake 3-10
Attendance Areas of Delta Greely, Alaska Gateway,
Copper River, and Yukon-Koyukuk; the cities of
Tetlin, Mentasta Lake, Nothway, Dot Lake,
Chistochina, and Tanacross; and the unincorporated
communities of Slana and Tok.
Kenai Peninsula Borough, Kodiak Island Borough and FEMA-1445-DR October 2-
Chignik Bay Area, to include Chignik Lake and Severe 3-Decem-
Chignik Lagoon Winter ber 20
Storms,
Flooding,
Coastal
Erosion,
and Tidal
Surge
Arizona
Counties of Apache, Coconino, Gila, and Navajo; and FEMA-1422-DR June
the Fort Apache Indian Reservation Wildfires 18-July
7
Arkansas
Counties of Ashley, Clay, Cleburne, Columbia, FEMA-1400-DR December
Craighead, Crittenden, Franklin, Greene, Severe 15, 200-
Independence, Jackson, Lincoln, Little River, storms and 1-Janua-
Logan, Monroe, Poinsett, Prairie, Scott, Stone, flooding ry 30,
White, and Woodruff 2002
Colorado
Counties of Adams, Alamosa, Arapahoe, Archuleta, FEMA-1421-DR April
Baca, Bent, Boulder, Broomfield, Chaffee, Wildfires 23-June
Cheyenne, Clear Creek, Conejos, Costilla, Crowley, 6
Custer, Delta, Denver, Dolores, Douglas, Eagle,
Elbert, El Paso, Fremont, Garfield, Gilpin, Grand,
Gunnison, Hinsdale, Huerfano, Jackson, Jefferson,
Kiowa, Kit Carson, Lake, La Plata, Larimer, Las
Animas, Lincoln, Mesa, Mineral, Moffat, Montezuma,
Montrose, Otero, Ouray, Park, Pitkin, Pueblo, Rio
Blanco, Rio Grande, Routt, Saguache, San Juan, San
Miguel, Summitt, Teller, Washington, Weld, and
Yuma; the Southern Ute and Ute Mountain
Reservations; and the Cities of Broomfield and
Denver
Guam
Territory of Guam FEMA-1426-DR July 5-6
Typhoon
Chata'an
Territory of Guam FEMA-1446-DR December
Super 8-16
Typhoon
Pongsona
Illinois
Counties of Adams, Alexander, Bond, Brown, Calhoun, FEMA-1416-DR April
Cass, Champaign, Christian, Clark, Clay, Clinton, Severe 21-May
Coles, Crawford, Cumberland, DeWitt, Douglas, Storms, 23
Edgar, Edwards, Effingham, Ford, Fayette, Tornadoes,
Franklin, Fulton, Gallatin, Greene, Hamilton, and
Hancock, Hardin, Iroquois, Jackson, Jasper, Flooding
Jefferson, Jersey, Johnson, Lawrence, Logan,
McDonough, Macon, Macoupin, Madison, Marion,
Mason, Massac, Menard, Monroe, Montgomery, Morgan,
Moultrie, Piatt, Pike, Perry, Pope, Pulaski,
Randolph, Richland, St. Clair, Saline, Sangamon,
Schuyler, Scott, Shelby, Union, Vermillion,
Wabash, Washington, Wayne, White, and Williamson
Indiana
Counties of Brown, Crawford, Dearborn, Dubois, FEMA-1418-DR April
Franklin, Gibson, Greene, Hamilton, Jackson, Severe 28-June
Jefferson, Johnson, Knox, Marion, Martin, Storms, 7
Montgomery, Ohio, Orange, Owen, Parke, Pike, Tornadoes
Posey, Putnam, Sullivan, Switzerland, Union, and
Vermillion, Vigo, and Washington Flooding
Counties of Bartholomew, Blackford, Brown, Daviess, FEMA-1433-DR September
Decatur, Delaware, Fayette, Franklin, Gibson, Severe 20
Grant, Greene, Hamilton, Hancock, Hendricks, Storms and
Henry, Jay, Johnson, Knox, Lawrence, Madison, Tornadoes
Marion, Monroe, Morgan, Owen, Pike, Posey,
Randolph, Rush, Shelby, Sullivan, Tipton, and
Vanderburg
Iowa
Counties of Allamakee, Benton, Buchanan, Cedar, FEMA-1420-DR June 3-25
Clayton, Clinton, Delaware, Des Moines, Dubuque, Severe
Fayette, Henry, Iowa, Jackson, Johnson, Jones, Storms and
Lee, Linn, Louisa, Muscatine, Scott, and Flooding
Winneshiek
Kansas
Counties of Allen, Anderson, Barber, Bourbon, FEMA-1402-DR January 2-
Butler, Chautauqua, Coffey, Cowley, Crawford, Severe 9-Febru-
Douglas, Elk, Franklin, Greenwood, Johnson, Winter Ice ary 15
Labette, Linn, Miami, Montgomery, Neosho, Osage, Storm
Sumner, Wilson, Woodson, and Wyandotte
Kentucky
Counties of Bath, Bell, Bourbon, Boyd, Breathitt, FEMA-1407-DR March
Carter, Clay, Elliott, Fleming, Greenup, Harlan, Severe 17-21
Johnson, Knott, Knox, Laurel, Lawrence, Lee, Storms and
Leslie, Letcher, Lewis, McCreary, Magoffin, Flooding
Menifee, Montgomery, Morgan, Nicholas, Owsley,
Perry, Powell, Rowan, Wayne, and Whitley
Counties of Breathitt, Breckenridge, Crittenden, FEMA-1414-DR April
Edmondson, Floyd, Grayson, Green, Hancock, Hardin, Severe 27-May
Henderson, Hopkins, Laurel, Letcher, Marion, Storms, 10
Martin, McLean, Meade, Ohio, Owsley, Pike, Tornadoes,
Rockcastle, Union, and Webster and
Flooding
Louisiana
Parishes of East Baton Rouge, Iberia, Jefferson, FEMA-1435-DR September
Lafourche, Livingston, Orleans, Plaquemines, St. Tropical 21-Octo-
Bernard, St. Charles, St. James, St. John the Storm ber 1
Baptist, St. Mary, St. Tammany, Tangipahoa, and Isidore
Terrebonne
Parishes of Acadia, Allen, Ascension, Assumption, FEMA-1437-DR October
Avoyelles, Beauregard, Calcasieu, Caldwell, Hurricane 1-16
Cameron, Catahoula, East Baton Rouge, East Lili
Feliciana, Evangeline, Iberia, Iberville,
Jefferson Davis, Jefferson, Lafayette, Lafourche,
LaSalle, Livingston, Natchitoches, Orleans,
Ouachita, Plaquemines, Pointe Coupee, Rapides, St.
Bernard, St. Charles, St. Helena, St. James, St.
John the Baptist, St. Landry, St. Martin, St.
Mary, St. Tammany, Tangipahoa, Terrebonne,
Vermillion, Vernon, Washington, West Baton Rouge,
and West Feliciana
Mariana Islands, Northern
Island of Rota FEMA-1430-DR July 4-5
Typhoon
Chata'an
Island of Rota FEMA-1447-DR December
Super 8-16
Typhoon
Pongsona
Maryland
Counties of Calvert, Charles, and Dorchester FEMA-1409-DR April 28
Tornado
Michigan
Counties of Baraga, Gogebic, Houghton, Marquette, FEMA-1413-DR April
and Ontonagan Flooding 10-May 9
Micronesia, Federated States of
Yap State FEMA-1417-DR February
Typhoon 27-March
Mitag 3
Chuuk State FEMA-1427-DR July 2-4
Tropical
Storm
Chata'an,
including
Flooding,
Mudslides,
and
Landslides
Minnesota
Counties of Becker, Beltrami, Clay, Clearwater, FEMA-1419-DR June 9-28
Goodhue, Hubbard, Itasca, Kittson, McLeod, Severe
Pennington, Polk, Roseau, and Wright Storms,
Flooding,
and
Tornadoes
Mississippi
Counties of Amite, Hancock, Harrison, Jackson, FEMA-1436-DR September
Lincoln, Pearl River, Pike, and Stone Hurricane 23-Octo-
Isidore ber 6
Counties of Clay, Lafayette, Lowndes, Monroe, FEMA-1443-DR November
Noxubee, and Oktibbeha Severe 10-11
Storms and
Tornadoes
Missouri
Counties of Adair, Audrain, Barton, Bates, Benton, FEMA-1403-DR January 2-
Boone, Buchanan, Caldwell, Carroll, Cass, Cedar, Severe 9-Febru-
Chariton, Clark, Clay, Clinton, Cooper, Daviess, Winter Ice ary 13
Grundy, Henry, Howard, Jackson, Johnson, Knox, Storm
Lafayette, Lewis, Linn, Livingston, Macon, Marion,
Monroe, Morgan, Pettis, Platte, Ralls, Randolph,
Ray, Saline, Scotland, Shelby, St. Clair,
Sullivan, and Vernon
Counties of Adair, Barry, Barton, Bollinger, Boone, FEMA-1412-DR April
Butler, Camden, Cape Girardeau, Carroll, Carter, Severe 24-June
Cedar, Christian, Chariton, Clark, Cooper, Storms and 10
Crawford, Dade, Dallas, De Kalb, Dent, Douglas, Tornadoes
Dunklin, Greene, Grundy, Hickory, Howard, Howell,
Iron, Jasper, Jefferson, Johnson, Knox, Laclede,
Lafayette, Lawrence, Lewis, Lincoln, Linn,
Livingston, McDonald, Macon, Madison, Maries,
Marion, Mercer, Miller, Mississippi, New Madrid,
Newton, Oregon, Osage, Ozark, Pemiscot, Perry,
Phelps, Pike, Polk, Pulaski, Ralls, Ray, Reynolds,
Ripley, Schuyler, Scotland, Scott, Shannon,
Shelby, St. Francois, St. Genevieve, Stoddard,
Stone, Sullivan, Taney, Texas, Vernon, Washington,
Wayne, Webster, and Wright
Montana
Counties of Glacier, Hill, Liberty, Pondera, and FEMA-1424-DR June 8-21
Toole; and the Blackfeet Indian Reservation Severe
Storms and
Flooding
New York
County of Erie FEMA-1404-DR December
Severe 24-29,
Winter 2001
Storm
Counties of Cattaraugus, Chautauqua, Erie, Genesee, FEMA-3170-EM December
and Wyoming Snowstorm 24-29,
2001
Counties of Clinton and Essex FEMA-1415-DR April 20
Earthquake
North Carolina
Counties of Alamance, Alexander, Anson, Burke, FEMA-1448-DR December
Cabarrus, Caldwell, Catawba, Chatham, Cleveland, Severe Ice 4-6
Davidson, Durham, Edgecombe, Forsyth, Franklin, Storms
Gaston, Granville, Guilford, Halifax, Harnett,
Iredell, Lee, Lincoln, McDowell, Mecklenburg,
Montgomery, Moore, Nash, Orange, Person, Randolph,
Rowan, Rutherford, Stanly, Union, Vance, and Wake
North Dakota
Counties of Grand Forks, Pembina, Stutsman, Traill, FEMA-1431-DR June
and Walsh; and the Fort Berthold Indian Severe 8-August
Reservation Storms, 11
Tornadoes,
and
Flooding
Ohio
Counties of Hancock, Ottawa, Paulding, Putnam, FEMA-1444-DR November
Seneca, and Van Wert Severe 10
Storms and
Tornadoes
Oklahoma
Counties of Alfalfa, Beaver, Becker, Beckham, FEMA-1401-DR January 3-
Blaine, Caddo, Canadian, Cimarron, Cleveland, Ice Storm 0-Febru-
Comanche, Creek, Custer, Dewey, Ellis, Garfield, ary 11
Garvin, Grady, Grant, Greer, Harmon, Harper,
Jackson, Kay, Kingfisher, Kiowa, Lincoln, Logan,
Major, McClain, Noble, Nowata, Oklahoma, Osage,
Pawnee, Payne, Pottawatomie, Roger Mills, Rogers,
Stephens, Texas, Tillman, Tulsa, Washington,
Washita, Woods, and Woodward
Oregon
Counties of Coos, Curry, Douglas, Lane, and Linn FEMA-1405-DR February
Severe 7-8
Winter
Storm with
High Winds
Tennessee
Counties of Anderson, Bedford, Bledsoe, Blount, FEMA-1408-DR January
Cannon, Claiborne, Clay, Cocke, Cumberland, Severe 23-March
Decatur, DeKalb, Dickson, Fentress, Giles, Storms and 20
Grainger, Hancock, Hardin, Hawkins, Jackson, Flooding
Lauderdale, Lawrence, Lewis, Lincoln, Loudon,
McNairy, Macon, Marshall, Maury, Meigs, Overton,
Roane, Scott, Sevier, Van Buren, Warren, and Wayne
Counties of Anderson, Bedford, Carroll, Coffee, FEMA-1441-DR November
Crockett, Cumberland, Gibson, Henderson, Madison, Severe 9-12
Marshall, Montgomery, Morgan, Rutherford, Scott, Storms,
Sumner, and Tipton Tornadoes,
and
Flooding
Texas
Counties of Atascosa, Bandera, Bee, Bexar, Blanco, FEMA-1425-DR June
Brown, Burnet, Caldwell, Calhoun, Callahan, Severe 29-July
Coleman, Comal, Dimmit, Duval, DeWitt, Eastland, Storms and 31
Frio, Gillespie, Goliad, Gonzales, Guadalupe, Flooding
Hays, Jim Wells, Jones, Karnes, Kendall, Kerr, La
Salle, Live Oak, McMullen, Medina, Nueces, Real,
San Patricio, San Saba, Taylor, Travis, Uvalde,
Victoria, Wilson, and Zavala
Counties of Brazoria, Frio, Galveston, Jim Wells, La FEMA-1434-DR September
Salle, Live Oak, Matagorda, Nueces, San Patricio, Tropical 6-30
Webb, and Wharton Storm Fay
Counties of Aransas, Hardin, Harris, Jefferson, FEMA-1439-DR October 2-
Liberty, Montgomery, Nueces, Orange, and San Severe 4-Novem-
Patricio Storms, ber 15
Tornadoes,
and
Flooding
Vermont
Counties of Caledonia, Essex, Franklin, Lamoille, FEMA-1428-DR June 5-13
and Orleans Severe
Storms and
Flooding
Virginia
Counties of Dickenson, Lee, Russell, Scott, Smyth, FEMA-1406-DR March
Tazewell, Washington, Wise, and Wythe; and Severe 17-20
Independent City of Norton Storms and
Flooding
Counties of Buchanan and Tazewell FEMA-1411-DR April
Severe 28-May 3
Storms and
Tornado
West Virginia
Counties of Logan, McDowell, Mercer, Mingo, and FEMA-1410-DR May 2-20
Wyoming Severe
Storms,
Flooding,
and
Landslides
Wisconsin
Counties of Adams, Clark, Dunn, Marathon, Marinette, FEMA-1429-DR June 21-25
Portage, Waushara, and Wood Severe
Storms and
Flooding
Counties of Barron, Burnett, Chippewa, Clark, Dunn, FEMA-1432-DR September
Langlade, Lincoln, Marathon, Polk, Portage, Price, Severe 2-6
Rusk, Sawyer, Shawano, St. Croix, Taylor, Storms,
Washburn, Waupaca, and Wood Tornadoes,
and
Flooding
Rev. Rul. 2003-29, 2003-11 I.R.B. 587, 2003-1 C.B. 587