IRS Revenue Ruling
1998-12

Code Sec. 165

<<FULL TEXT>>

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.

REV. RUL. 98-12

Under section 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. sections 5121-5204c (1988 & Supp. V
1993) (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.

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 (23 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 section 165(i) apply only to losses that are
otherwise deductible under section 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 section 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 to 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, Severe storms, July 17-22, 1997
Choctaw, and Mobile flooding, and high
winds associated with
Hurricane Danny

ARKANSAS
Counties of Baxter, Severe storms and March 1-4, 1997
Clark, Clay, Conway, tornadoes
Craighead, Cross,
Greene, Hempstead, Hot
Spring, Independence,
Jackson, Jefferson,
Lawrence, Lee, Lincoln,
Lonoke, Mississipi,
Nevada, Newton,
Poinsett, Pope,
Pulaski, Saline, White,
and Woodruff

Counties of Bradley, Severe storms and April 4-21, 1997
Clay, Cleburne, flooding
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

CALIFORNIA
Counties of Alameda, Severe storms, December 28, 1996-April
Alpine, Amador, flooding, and mud and 1, 1997
Butte, Calaveras, land slides
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

<<END RULING>>



COLORADO
Counties of Baca, Clear Severe storms, heavy July 28-August 12, 1997
Creek, Crowley, Elbert, rains, flash floods,
Kiowa, Larimer, other flooding, mud
Lincoln, Logan, Morgan, and land slides, and
Otero, Phillips, severe ground
Prowers, and Weld saturation

FLORIDA
Counties of Citrus, Severe storms, high December 25, 1997-
Hernando, Hillsborough, winds, tornadoes, January 14, 1998
Lake, Orange, Osceola, and flooding
Pasco, Polk, and
Sumter

GUAM
Territory of Guam Typhoon Paka and December 16-17, 1997
associated torrential
rains, high winds,
high surf, and tidal
surges

IDAHO
Counties of Adams, Severe storms, November 16, 1996-
Benewah, Boise, flooding, and mud January 4, 1997
Bonner, Boundary, and land slides
Camas, Clearwater,
Elmore, Gem, Idaho,
Koontenai, Latah, Nez
Perce, Owyhee, Payette,
Shoshone, Valley and
Washington

Counties of Benewah, Severe storms, March 14-June 30, 1997
Bingham, Bonnner, snowmelt, and mud
Bonneville, Boundary, and landslides
Butte, Custer, Fremont,
Jefferson, Kootenai,
Madison, and Shoshone

ILLINOIS
Counties of Alexander, Severe storms and March 1-April 1, 1997
Gallatin, Hardin, flooding
Massac, Pope, and
Pulaski

County of Cook Severe thunder storms August 16-17, 1997
and flash flooding

INDIANA
Counties of Clark, Severe storms and February 28-March 31,
Crawford, Dearborn, flooding 1997
Floyd, Harrison,
Jefferson, Ohio, Perry,
Posey, Spencer,
Switzerland,
Vanderburgh, and
Warrick

IOWA
Counties of Cass, Severe winter storm October 26-28, 1997
Clarke, Iowa, Jasper,
Madison, Mahaska,
Marion, Mills, Polk,
Pottawattamie,
Poweshiek, Union, and
Warren

KENTUCKY
Counties of Adair, Severe storms, March 1-24, 1997
Anderson, Ballard, flooding, and
Barren, Bath, Boone, tornadoes
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

LOUISIANA
Counties of Calcasieu, Severe ice storm January 12-17, 1997
Cameron, and
Jefferson Davis

MICHIGAN
Counties of Genesee, Severe storms, July 2, 1997
Macomb, Oakland, tornadoes, and
Saginaw, and Wayne flooding

MICRONESIA
Yap Proper, Ulithi Typhoon Fern December 25-26, 1996
Atoll, and Ngula
Atoll of Yap State

MINNESOTA
Counties of Becker, Severe winter storms January 3-February 3,
Beltrami, Benton, 1997
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

Counties of Aitkin, Severe flooding, March 21-May 24, 1997
Anoka, Becker, severe winter storms,
Beltrami, Benton, Big snowmelt, high
Stone, Blue Earth, winds, rains, and ice
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

Counties of Anoka, Severe storms, June 28-July 27, 1997
Hennepin, Isanti, flooding, tornadoes,
Kandiyohi, Ramsey, and high winds
Sherburne, and
Wright

MISSISSIPPI
Counties of Bolivar, Flooding February 28-April 21,
Tunica, Warren, and 1997
Washington

MONTANA
Counties of Broadwater, Severe storms, ice March 1-August 6, 1997
Carbon, Dawson, Deer jams, snowmelt, flood-
Lodge, Flathead, Judith ing, and extreme soil
Basin, Lincoln, Madison, saturation
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

NEBRASKA
Counties of Adams, Severe snow storms, October 24-26, 1997
Banner, Buffalo, Butler, rains, and strong
Cass, Cheyenne, Clay, winds
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

NEVADA
Counties of Churchill, Severe storms, December 20, 1996-
Douglas, Lyon, Mineral, flooding, and mud and January 17, 1997
Storey, and Washoe; and land slides
the City of Carson City;
and the Walker River
Paiute tribal lands
located in Churchill,
Lyon, and Mineral
Counties

NEW JERSEY
County of Atlantic Severe storms and August 20-21, 1997
flooding

NORTH DAKOTA
All Counties Major winter storm January 3-31, 1997
and blizzard

Counties of Adams, Severe flooding, February 28-May 24,
Barnes, Benson, severe winter storm, 1997
Billings, Bottineau, heavy spring rains,
Bowman, Burke, Burleigh, rapid snowmelt, high
Cass, Cavalier, Dickey, winds, ice jams, and
Divide, Dunn, Eddy, ground saturation
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

NORTHERN MARIANAS
Islands of Rota, Saipan, Super Typhoon Keith November 2-3, 1997
and Tinian

Island of Rota Typhoon Paka December 16-17, 1997

OHIO
Counties of Adams, Severe storms and February 28-March 17,
Athens, Brown, Clermont, flooding 1997
Gallia, Hamilton,
Highland, Hocking,
Jackson, Lawrence,
Meigs, Monroe, Morgan,
Pike, Ross, Scioto,
Vinton and Washington

OREGON
Counties of Baker, Coos, Severe winter storms, December 25, 1996-
Douglas, Gilliam, Grant, flooding, and mud January 6, 1997
Jackson, Josephine, and land slides
Klamath, Lake, Lane,
Morrow, Umatilla,
Wallowa, and Wheeler

SOUTH DAKOTA
Counties of Butte, Severe winter storm November 13-26, 1996
Harding, Hutchinson,
Lake, Meade, Minnehaha,
Moody, Pennington,
Perkins, and Turner

All counties Severe winter storms January 3-31, 1997
and blizzard

Counties of Aurora, Severe flooding, February 3- May 24,
Beadle, Bennett, Bon severe winter storms, 1997
Homme, Brookings, Brown, heavy spring rains,
Brule, Buffalo, Butte, rapid snowmelt, high
Campbell, Charles Mix, winds, and ice jams
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

TENNESSEE
Counties of Benton, Heavy rains, tornadoes, February 28-March
Carroll, Cheatham, flooding, hail, 24, 1997
Chester, Clay, Davidson, and high winds
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

Counties of Bradley, Severe storms and March 28-29, 1997
Grundy, Hamilton, Polk, tornadoes
Sequatchie, and Smith

TEXAS
Counties of Bandera, Severe thunderstorms June 21-July 15,
Bexar, Blanco, Burnet, and flooding 1997
Comal, Eastland,
Edwards, Gillespie,
Goliad, Guadalupe,
Hays, Kendall, Kerr,
Kimble, Llano, Mason,
Medina, Real, San Saba,
Travis, and Uvalde

VERMONT
Counties of Caledonia, Excessive rainfall, July 15-17, 1997
Franklin, Lamoille, high winds, and
Orleans, and Washington flooding

WASHINGTON
Counties of Adams, Severe winter storms, December 26, 1996-
Asotin, Benton, Chelan, flooding, and mud February 10, 1997
Clallam, Clark, and land slides
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

Counties of Clallam, Heavy rains, snow melt, March 18-28, 1997
Grays Harbor, Jefferson, flooding, and mud
King, Kitsap, Lincoln, and land slides
Mason, Pacific, Pend
Oreille, Snohomish,
Spokane, Stevens, and
Thurston

County of Pend Oreille Flooding and snowmelt April 10-June 30, 1997

WEST VIRGINIA
Counties of Braxton, Heavy rains, wind February 28-March
Cabell, Calhoun, Clay, driven rains, high 15, 1997
Gilmer, Jackson, Kanawha, winds, flooding,
Lincoln, Mason, Putnam, and slides
Roane, Tyler, Wayne,
Wetzel, Wirt, and Wood

<<END RULING>>

 

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