Information related to qualified disaster losses in the 2016 and 2017 Instructions for Form 4684 has been revised to reflect enactment of the Bipartisan Budget Act of 2018, P.L. 115-123, sec. 20201 and sec. 20101. Prior to enactment of the Bipartisan Budget Act, personal casualty losses caused by Tropical Storm Harvey in Louisiana, Hurricane Irma in South Carolina, or the California wildfires were not considered qualified disaster losses. Taxpayers were previously told to use the usual calculations when completing Form 4684. The instructions now reflect that qualified 2017 disaster losses include Hurricane Harvey or Tropical Storm Harvey, Hurricane Irma, Hurricane Maria, or the California wildfires. The instructions provide special relief for these qualified disaster losses described in the Specific Instructions section for lines 11 and 15.
In addition, the 2016 Instructions for Form 4684 has been updated to include the Recent Developments Article from February 2018 regarding the Election to Claim a Qualified Disaster Loss Sustained in 2016 on an Amended 2015 Tax Return.