IRS Revenue Ruling
2001-15

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 or
emergency areas during 2000 under the Disaster Relief and Emergency
Assistance Act.


REV. RUL. 2001-15

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) (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 section 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 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 2000 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.


FURTHER INFORMATION

For further information regarding this revenue ruling, contact Martin
Scully Jr. on (202) 622-4960 (not a toll-free call).

Disaster Area Disaster Description Disaster Date
------------- -------------------- -------------
ALABAMA
-------
Counties of DeKalb, FEMA-1317-DR January 20-29
Cherokee, and Jackson Severe winter storm

Counties of Jefferson FEMA-1322-DR March 10-11
and Tuscaloosa Severe storms and
flooding

Counties of Cherokee, FEMA-1352-DR December 16-22
Dale, Etowah, Geneva, Severe storms
Henry, Houston, and tornadoes
Jefferson, Limestone,
Macon, St. Clair, and
Tuscaloosa

ALASKA
------
Municipality of Anchorage; FEMA-1316-DR December 21, 1999-
Boroughs of Aleutians Severe winter storms February 23, 2000
East, Bristol Bay, Denali, and avalanches
Fairbanks North Star,
Kenai Peninsula, Kodia
Island, Lake and
Peninsula, and Matanaska-
Susitna; and Census Areas
of Bethel, Dillingham,
Southeast Fairbanks,
Valdez-Cordova, and Wade
Hampton

ARIZONA
-------
Counties of Cochise, La FEMA-1347-DR October 21-
Paz, Maricopa, Pinal, Severe storms and November 8
Santa Cruz, and Yavapai flooding

ARKANSAS
--------
Counties of Arkansas, FEMA-3159-EM December 12-
Benton, Bradley, Calhoun, Severe winter ice January 8, 2001
Clark, Cleveland, Columbia, storm
Crawford, Crittenden,
Cross, Dallas, Desha, Drew,
Faulkner, Franklin,
Garland, Grant, Hempstead,
Hot Spring, Howard,
Jackson, Jefferson,
Johnson, Lafayette, Lee,
Lincoln, Little River,
Logan, Lonoke, Madison,
Miller, Mississippi,
Monroe, Montgomery, Nevada,
Ouachita, Perry, Pike,
Polk, Poinsett, Prairie,
Pulaski, St. Francis,
Saline, Scott, Sebastian,
Sevier, Washington, White,
Woodruff, Union, and Yell

Counties of Arkansas, FEMA-1354-DR December 12-
Baxter, Benton, Boone, Severe winter ice January 8, 2001
Bradley, Calhoun, Clark, storm
Cleburne, Cleveland,
Columbia, Conway, Crawford,
Crittenden, Cross, Dallas,
Desha, Drew, Faulkner,
Franklin, Fulton, Garland,
Grant, Hempstead, Hot
Spring, Howard,
Independence, Izard,
Jackson, Jefferson,
Johnson, Lafayette, Lee,
Lincoln, Little River,
Logan, Lonoke, Madison,
Marion, Miller,
Mississippi, Monroe,
Montgomery, Nevada,
Newton, Ouachita, Perry,
Pike, Polk, Poinsett, Pope,
Prairie, Pulaski, St.
Francis, Saline, Scott,
Searcy, Sebastian, Sevier,
Sharp, Stone, Union, Van
Buren, Washington, White,
Woodroof, and Yell

CALIFORNIA
----------
Napa County FEMA-1342-DR September 3
Earthquake

DISTRICT OF COLUMBIA
--------------------
District of Columbia FEMA-1325-DR January 25-31
Severe winter storm

District of Columbia FEMA-1338-DR August 7
Severe thunderstorms

FLORIDA
-------
Counties of Bay, Calhoun, FEMA-1344-DR September 21-
Escambia, Franklin, Gulf, Tropical Storm Helene October 4
Jefferson, Leon, Okaloosa,
and Walkulla

Counties of Broward, FEMA-1345-DR October 3-11
Collier, Miami-Dade, and Severe storms and
Monroe flooding

GEORGIA
-------
Counties of Banks, Barrow, FEMA-1311-DR January 22-
Bartow, Butts, Carroll, Severe winter storm February 1
Catossa, Chattooga,
Cherokee, Clarke, Cobb,
Dawson, DeKalb, Douglas,
Elbert, Fannin, Floyd,
Forsyth, Franklin, Fulton,
Gilmer, Gordon, Greene,
Gwinnett, Habersham, Hall,
Hart, Haralson, Henry,
Jackson, Jasper, Jones,
Lamar, Lumpkin, Monroe,
Newton, Oconee, Oglethorpe,
Paulding, Pickens, Pike,
Rabun, Rockdale, Spalding,
Stephens, Taliaferro,
Union, Upson, Walker,
Walton, White, and Wilkes

Counties of Colquitt, FEMA-1315-DR February 14
Decatur, Grady, Mitchell, Severe storms and
Tift, and Turner tornadoes

HAWAII
------
Hawaii County FEMA-1348-DR October 28-
Severe storms and November 2
flooding

IDAHO
-----
Counties of Ada, Bannock, FEMA-1341-DR July 27-September
Bingham, Blaine, Boise, Wildfires 26
Clearwater, Custer, Elmore,
Idaho, Jerome, Lemhi,
Lewis, Lincoln, Power, and
Valley; and the Fort Hall
Indian Reservation

ILLINOIS
--------
Counties of Bureau, Cook, FEMA-3161-EM December 10-31
DeWitt, DuPage, Ford, Record/near record
Fulton, Grundy, Henderson, snow
Henry, Iroquois, Kane,
Kankakee, Kendall, Lake, La
Salle, Livingston,
Marshall, McDonough,
McHenry, McLean, Menard,
Ogle, Peoria, Stark, Will,
and Winnebago

INDIANA
-------
Counties of Allen, Carroll, FEMA-3162-EM December 11-31
Cass, Elkhart, Fulton, Record/near record
Howard, Huntington, Jasper, snow
Kosciusko, Lagrange, Lake,
Miami, Noble, Pulaski, St.
Joseph, Steuben, White, and
Whitley

KANSAS
------
Counties of Crawford, FEMA-1327-DR April 19-20
Labette, and Neosho Severe storms and
tornadoes

KENTUCKY
--------
Counties of Ballard, FEMA-1310-DR January 3-4
Breckinridge, Carlisle, Tornadoes, severe
Crittenden, Daviess, storms, torrential
Hancock, Henderson, rains and flash
Hopkins, Livingston, flooding
Spencer, and Webster

Counties of Bath, Bourbon, FEMA-1320-DR February 18-March2
Boyd, Carter, Fleming, Severe storms and 2
Greenup, Harrison, Johnson, flooding
Lawrence, Lewis, Mason,
Nicholas, Oldham,
Pendleton, Robertson, and
Rowan

LOUISIANA
---------
Parishes of Bienville, FEMA-1314-DR January 27-30
Claiborne, Lincoln, Severe winter storm
Ouachita, Richland, Union,
Webster, and West Carroll

Parishes of Bienville, FEMA-1357-DR December 11-
Bossier, Caddo, Claiborne, Severe winter ice January 3, 2001
Lincoln, Ouachita, Union storm
and Webster

MAINE
-----
Counties of Androscoggin, FEMA-1326-DR March 28-April 26
Aroostock, Franklin, Severe storms,
Kennebec, Oxford, flooding, and ice jams
Piscataquis, Somerset, and
Washington

MARYLAND
--------
Baltimore City; and FEMA-1324-DR January 25-30
Counties of Anne Arundel, Severe winter storm
Baltimore, Calvert,
Caroline, Charles,
Dorchester, Frederick,
Howard, Kent, Montgomery,
Prince Georges, Queen
Anne's, St. Mary's, and
Talbot

MICHIGAN
--------
Counties of Oakland and FEMA-1346-DR September 10-11
Wayne Severe storms and
flooding

MINNESOTA
---------
Counties of Becker, FEMA-1333-DR May 17-July 26
Chippewa, Clay, Clearwater, Severe storms,
Dakota, Dodge, Faribault, flooding, and
Fillmore, Freeborn, tornadoes
Houston, Mahnomen, Mower,
Norman, Ramsey, Roseau,
Winona, and Yellow
Medicine; and the White
Earth Indian Reservation

MISSOURI
--------
Counties of Crawford, FEMA-1328-DR May 6-7
Franklin, Gasconade, Severe thunderstorms
Jefferson, St. Charles, and flash flooding
Ste. Genevieve, St.
Francois, St. Louis County,
Warren, and Washington

MONTANA
-------
Counties of Beaverhead, Big FEMA-1340-DR July 13-September
Horn, Blaine, Broadwater, Wildfires 25
Carbon, Carter, Cascade,
Chouteau, Custer, Deer
Lodge, Fallon, Fergus,
Flathead, Gallatin,
Garfield, Glacier, Golden
Valley, Granite, Hill,
Jefferson, Judith Basin,
Lake, Lewis and Clark,
Liberty, Lincoln, Madison,
Meagher, Mineral, Missoula,
Musselshell, Park,
Petroleum, Phillips,
Pondera, Powder River,
Powell, Prairie, Ravalli,
Rosebud, Sanders, Silver
Bow, Stillwater, Sweet
Grass, Teton, Toole,
Treasure, Wheatland, and
Yellowstone; and Indian
Reservations of the
Blackfeet, Crow, Flathead,
Fort Belknap, Northern
Cheyenne, and Rocky Boy's

Counties of Carter, Fallon, FEMA-1350-DR October 31-
Richland, Roosevelt, Severe winter storms November 20
Sheridan, and Wibaux

NEW JERSEY
----------
Counties of Morris and FEMA-1337-DR August 12-21
Sussex Severe storms,
flooding and mudslides

Counties of Atlantic, FEMA-3156-EM May 30-November 1
Bergen, Burlington, Camden, West Nile Virus
Cape May, Cumberland,
Essex, Gloucester, Hudson,
Hunterdon, Mercer,
Middlesex, Monmouth,
Morries, Ocean, Passaic,
Salem, Somerset, Sussex,
Union, and Warren

NEW MEXICO
----------
Counties of Bernalillo, FEMA-3154-EM May 5-July 7
Catron, Chaves, Cibola, Severe fire threats
Colfax, Curry, BeBaca, Dona
Ana, Eddy, Grant,
Guadalupe, Harding,
Hidalgo, Lea, Lincoln, Los
Alamos, Luna, McKinley,
Mora, Otero, Quay, Rio
Arriba, Roosevelt, San
Juan, San Miquel, Sandoval,
Sante Fe, Sierra, Socorro,
Taos, Torrance, Union, and
Valencia

Counties of Bernalillo, FEMA-1329-DR May 5-June 9
Chaves, Cibola, DeBaca, Severe forest fire
Dona Ana, Eddy, Guadalupe,
Lincoln, Los Alamos,
McKinley, Mora, Otero, Rio
Arriba, Sandoval, San Juan,
San Miguel, Santa Fe,
Sierra, Socorro, Taos, and
Torrance

NEW YORK
--------
Counties of Albany, FEMA-1335-DR May 3-August 12
Allegany, Cattaraugus, Severe storms and
Chenango, Columbia, flooding
Dutchess, Erie, Essex,
Greene, Herkimer, Lewis,
Livingston, Madison,
Montgomery, Niagara,
Oneida, Onondaga, Orleans,
Otsego, Rensselaer,
Schenectady, Schoharie,
Steuben, Sullivan, Tioga,
Tompkins, Ulster, and Yates

New York City; and Counties FEMA-3155-EM May 22-November 1
of Albany, Allegany, Bronx, West Nile Virus
Broome, Cattaraugus,
Cayuga, Chautauqua,
Chenango, Chemung, Clinton,
Columbia, Cortland,
Delaware, Dutchess, Erie,
Essex, Franklin, Fulton,
Genesee, Greene, Hamilton,
Herkimer, Jefferson, Kings,
Lewis, Livingston, Madison,
Monroe, Montgomery, Nassau,
Niagara, Oneida, Onondaga,
Ontario, Orange, Orleans,
Oswego, Otsego, Putnam,
Queens, Rensselaer,
Richmond, Rockland, St.
Lawrence, Saratoga,
Schenectady, Schoharie,
Schuyler, Seneca, Steuben,
Suffolk, Sullivan, Tioga,
Tompkins, Ulster, Warren,
Washington, Wayne,
Westchester, Wyoming, and
Yates

Counties of Cattaraugus, FEMA-3157-EM November 19-21
Chautauqua, and Erie Near record snow

NORTH CAROLINA
--------------
Counties of Alamance, FEMA-1312-DR January 24-
Anson, Cabarrus, Caswell, Severe winter storm February 1
Chatham, Davidson, Durham,
Edgecombe, Franklin,
Granville, Guilford,
Halifax, Harnett, Hoke,
Johnston, Lee, Mecklenburg,
Montgomery, Moore, Nash,
Northampton, Orange,
Person, Randolph, Richmond,
Rockingham, Scotland,
Stanly, Union, Vance, Wake,
Warren, and Wilson

NORTH DAKOTA
------------
Counties of Barnes, Benson, FEMA-1334-DR April 5-August 12
Bottineau, Burke, Burleigh, Severe storms,
Cass, Cavalier, Dickey, flooding and
Eddy, Emmons, Foster, Grand ground saturation
Forks, Griggs, Kidder,
LaMoure, Logan, McHenry,
McIntosh, McLean, Morton,
Mountrail, Nelson, Oliver,
Pembina, Pierce, Ramsey,
Ransom, Renville, Richland,
Rolette, Sargent, Sheridan,
Steele, Stutsman, Towner,
Traill, Walsh, Ward, and
Wells; and Indian
Reservations of the Spirit
Lake Tribal Reservation,
the Three Affiliated
Tribes, and the Turtle
Mountain Band of the
Chippewa

Counties of Benson, Bowman, FEMA-1353-DR November 1-20
Cavalier, Divide, Golden Severe winter storms
Valley, McKenzie, Ramsey, and tornadoes
Towner, and Williams

OHIO
----
Counties of Adams, Gallia, FEMA-1321-DR February 18-March2
Jackson, Lawrence, Meigs, Severe storms and 2
Pike, and Scioto flooding

Lucas County FEMA-1339-DR July 29-August 2
Severe storms and
flooding

Greene County FEMA-1343-DR September 20
Severe storms and a
tornado

Counties of Caddo, Carter, FEMA-1349-DR October 21-29
Comanche, Cotton, Grady, Severe storms and
Jackson, Jefferson, Kiowa, flooding
McClain, and Tillman

OKLAHOMA
--------
Counties of Adair, Atoka, FEMA-3158-EM December 25-
Bryan, Carter, Cherokee, Severe winter and January 10, 2001
Choctaw, Cleveland, Coal, ice storm
Cotton, Creek, Garvin,
Grady, Haskell, Hughes,
Jefferson, Johnston,
Latimer, LeFlore, Lincoln,
Love, Marshall, McClain,
McCurtain, McIntosh,
Murray, Muskogee, Okfuskee,
Oklahoma, Okmulgee,
Pittsburg, Pontotoc,
Pottawatomie, Pushmataha,
Seminole, Sequoyah,
Stephens, Tulsa, Wagoner,
and Washington

Counties of Caddo, Carter, FEMA-1349-DR October 21-29
Comanche, Cotton, Grady, Severe storms and
Jackson, Jefferson, Kiowa, flooding
McClain, Oklahoma, and
Tillman

Counties of Adair, Atoka, FEMA-1355-DR December 25-
Beckham, Bryan, Caddo, Severe winter ice January 10, 2001
Carter, Cherokee, Choctaw, storm
Cleveland, Coal, Comanche,
Cotton, Craig, Creek,
Delaware, Garvin, Grady,
Greer, Harmon, Haskell,
Hughes, Jackson, Jefferson,
Johnston, Latimer, LeFlore,
Lincoln, Love, Marshall,
Mayes, McClain, McCurtain,
McIntosh, Murray, Muskogee,
Nowata, Okfuskee, Oklahoma,
Okmulgee, Ottawa,
Pittsburg, Pontotoc,
Pottawatomie, Pushmataha,
Rogers Seminole, Sequoyah,
Stephens, Tillman, Tulsa,
Wagoner, Washington, and
Washita

SOUTH CAROLINA
--------------
Counties of Abbeville, FEMA-1313-DR January 22-
Aiken, Allendale, Bamberg, Severe winter storm February 1
Barnwell, Berkley, Calhoun,
Clarendon, Charleston,
Collenton, Cherokee,
Chester, Chesterfield,
Darlington, Dillon,
Dorchester, Edgefield,
Fairfield, Florence,
Georgetown, Greenwood,
Kershaw, Lancaster,
Laurens, Lee, Lexington,
Marion, Marlboro,
McCormick, Newberry,
Orangeburg, Richland,
Saluda, Spartanburg,
Sumter, Union,
Williamsburg, and York

SOUTH DAKOTA
------------
Counties of Custer, Fall FEMA-1330-DR April 18-20
River, Jackson, Severe winter storm,
Pennington, and Shannon flooding, landslides,
and mudslides


TENNESSEE
---------
Counties of Anderson, FEMA-1331-DR May 23-31
Benton, Cheatham, Davidson, Severe storms,
Henry, Hickman, Houston, tornadoes, and
Jackson, Knox, Lake, Obion, flooding
Perry, Pickett, Stewart,
Weakley

TEXAS
-----
Tarrant County FEMA-1323-DR March 28-29
Severe storms,
tornadoes, and
flooding

Counties of Borden, Bowie, FEMA-1356-DR December 12-
Carson, Cass, Cherokee, Severe winter ice January 15, 2001
oke, Dawson, Delta, storm
Gains, Garza, Gray, Gregg,
Grayson, Fannin, Franklin,
Harrison, Hopkins, Hunt,
Lamar, Lynn, Marion,
Montague, Morris, Panola,
Rains, Red River, Rusk,
Smith, Titus, Upshur, and
Wood

VERMONT
-------
Counties of Addison, FEMA-1336-DR July 14-18
Bennington, Orange, Severe storms and
Rutland, Windham, and flooding
Windsor

Counties of Bennington and FEMA-1358-DR December 16-18
Rutland Severe storms and
flooding

VIRGINIA
--------
Cities of Alexandria, FEMA-1318-DR January 25-30
Colonial Heights, Danville, Severe winter storm
Emporia, Fairfax, Franklin,
Fredericksburg, Hopewell,
Lynchburg, Manassas,
Newport News, Norton,
Petersbrug, Richmond,
Suffolk, Williamsburg; and
Counties of Accomack,
Albermarle, Alleghany,
Amelia, Amherst,
Appomattox, Arlington,
Augusta, Bath, Bedford,
Bland, Botetourt,
Brunswick, Buchanan,
Buckingham, Campbell,
Caroline, Carroll, Charles
City, Charlotte,
Chesterfield, Clarke,
Craig, Culpeper,
Cumberland, Dickenson,
Dinwiddie, Essex, Fairfax,
Fauquier, Floyd, Fluvanna,
Franklin, Frederick, Giles,
Goochland, Grayson, Greene,
Greensville, Halifax,
Hanover, Henrico, Henry,
Highland, Isle of Wight,
James City, King George,
King William, King and
Queen, Lancaster, Lee,
Loudon, Louisa, Lunenburg,
Madison, Mecklenburg,
Middlesex, Montgomery,
Nelson, New Kent,
Northampton,
Northumberland, Nottoway,
Orange, Patrick,
Pittsylvania, Powhatan,
Prince Edward, Prince
George, Prince William,
Pulaski, Rappahannock,
Richmond, Roanoke,
Rockbridge, Rockingham,
Russell, Scott, Shenandoah,
Smyth, Southampton,
Spotsylvania, Stafford,
Surry, Sussex, Tazewell,
Warren, Washington,
Westmoreland, Wise, Wythe,
and York

WEST VIRGINIA
-------------
Counties of Barbour, FEMA-1319-DR February 18-22
Braxton, Cabell, Calhoun, Flooding, severe
Doddridge, Gilmer, storms, and
Harrison, Jackson, landslides
Kanawha, Lewis, Lincoln,
Marion, Mason, Monongalia,
Pocohontas, Preston,
Putnam, Randolph, Ritchie,
Roane, Taylor, Tucker,
Tyler, Upshur, Wetzel, and
Wirt

WISCONSIN
---------
Counties of Adams, Ashland, FEMA-1332-DR May 26-July 19
Barron, Burnett, Columbia, Severe storms,
Crawford, Dane, Dodge, flooding, and
Forest, Grant, Green, Iowa, tornadoes
Iron, Jackson, Juneau,
Kenosha, Lafayette,
Milwaukee, Monroe, Oneida,
Polk, Racine, Richland,
Rusk, Sauk, Sawyer, Vernon,
Walworth, Waukesha, and
Washburn

Counties of Dane, Door, FEMA-3163-EM December 11-31
Green, Kenosha, Kewaunee, Record/near record
Manitowoc, Milwaukee, snow
Racine, Rock, Sheboygan,
and Walworth

WYOMING
-------
Counties of Crook, Goshen, FEMA-1351-DR October 31-
Platte, and Weston Severe winter storms November 20

<<END RULING>>

TO CONTACT
DON FITCH CPA

Phone Don Fitch CPA Toll Free at (877)CPA-Help or (877)272-4357 or on our Direct Line at (760)674-1722.