IRS Revenue Ruling
2002-11
 

 Code Sec. 165

<<FULL TEXT>>

26 CFR 1.165-11: Election in respect of losses attributable to a disaster.

Election in respect to 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.

REV. RUL. 2002-11

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 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 Description Disaster Date
------------- -------------------- -------------
ALABAMA
Counties of Blount, Fayette, FEMA-1362-DR February 16-17
Jefferson, Lamar, Tuscaloosa, Severe storms and
and Walker flooding

Counties of Autauga, Blount, FEMA-1399-DR November 24-
Butler, Calhoun, Cherokee, Severe storms and December 12
Clay, Dale, DeKalb, Etowah, tornadoes
Fayette, Jefferson, Lamar,
Lawrence, Madison, Marion,
Marshall, St. Clair,
Talladega, and Winston

ARKANSAS
Counties of Bradley, Clark, FEMA-1363-DR February 14-
Cleveland, Columbia, Conway, Severe storms and March 21
Craighead, Dallas, Drew, flooding
Franklin, Hempstead, Hot
Spring, Lafayette, Lincoln,
Little River, Miller, Nevada,
Newton, Ouachita, Polk,
Prairie, Union, and White

COLORADO
Counties of Baca, Bent, FEMA-1374-DR April 11-22
Cheyenne, Crowley, Kiowa, Severe storms
Lincoln, Logan, Morgan,
Phillips, Prowers, Sedgwick,
Washington, Weld, and Yuma

DISTRICT OF COLUMBIA
All FEMA-1389-DR August 10-12
Flooding

FLORIDA
Counties of Alachua, Baker, FEMA-1359-DR December 1, 2000-
Bradford, Brevard, Broward, Severe freeze January 25, 2001
Charlotte, Citrus, Clay,
Collier, Columbia, DeSoto,
Dixie, Duval, Flagler,
Gilchrist, Glades, Hamilton,
Hardee, Hendry, 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, FEMA-1381-DR June 11-15
Gadsden, Holmes, Jefferson, Tropical Storm
Leon, Liberty, Wakulla, and Allison
Washington

Counties of Charlotte, FEMA-1393-DR September 13-21
Collier, DeSoto, Flagler, Tropical Storm
Hardee, Highlands, Lee, Gabrielle
Manatee, Putnam, St. Johns,
and Sarasota

GUAM
All FEMA-1397-DR October 13
Earthquake

ILLINOIS
Counties of Adams, Calhoun, FEMA-1368-DR April 18-May 29
Carroll, Hancock, Henderson, Flooding
Jo Daviess, Mercer, Pike,
Rock Island, and Whiteside

IOWA
Counties of Allamakee, FEMA-1367-DR April 8-May 29
Buchanan, Calhoun, Clayton, Severe storms and
Clinton, Des Moines, Dubuque, flooding
Grundy, Henry, Humboldt,
Jackson, Lee, Louisa, Lucas,
Muscatine, Palo Alto,
Pottawattamie, Ringgold, Sac,
Scott, Union, Wapello, and
Webster

KANSAS
County of Barton FEMA-1366-DR April 21-May 1
Severe storms and
tornado

KENTUCKY
Counties of Bath, Clay, FEMA-1388-DR July 27-August 23
Elliot, Estill, Floyd, Severe storms and
Harrison, Johnson, Knott, flooding
Lawrence, Letcher, Lewis,
Livingston, Mason, Menifee,
Perry, Pike, Powell,
Rockcastle, Rowan, and
Whitley Louisiana

Parishes of Bienville, FEMA-1357-DR December 11, 2000-
Bossier, Caddo, Claiborne, Severe winter storm January 3, 2001
Lincoln, Ouachita, Union, and
Webster

Parishes of Ascension, FEMA-1380-DR June 5-22
Assumption, Beauregard, East Tropical Storm
Baton Rouge, East Feliciana Allison
Parish, Iberia, Iberville,
Jefferson, Lafayette,
Lafourche, Livingston,
Orleans, Pointe Coupee, St.
Bernard, 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, FEMA-1371-DR March 5-31
Kennebec, Oxford, Penobscot, Severe storms and
Washington, and York flooding

Counties of Androscoggin, FEMA-3164-EM March 5-31
Aroostook, Cumberland, Severe winter storm
Franklin, Hancock, Lincoln,
Oxford, Penobscot,
Piscoataquis, Sagadahoc,
Somerset, Washington, and
York

MASSACHUSETTS
Counties of Berkshire, Essex, FEMA-3165-EM March 5-7
Franklin, Hampshire, Snowstorm
Middlesex, Norfolk, and
Worcester

Counties of Bristol, Essex, FEMA-1364-DR March 5-April 16
Middlesex, Norfolk, Plymouth, Severe storms and
Suffolk, and Worcester flooding

MINNESOTA
Counties of Aitkin, Anoka, FEMA-1370-DR March 23-July 3
Beltrami, Benton, Big Stone, Flooding
Brown, Carlton, Carver,
Chippewa, Chisago, Clay,
Clearwater, Crow Wing,
Dakota, Dodge, 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, FEMA-1360-DR February 16
Attala, Bolivar, Calhoun, Tornadoes and severe
Carroll, Chickasaw, Choctaw, storms
Clay, Coahoma, Forrest,
Franklin, Grenada, Holmes,
Humphreys, Itawamba, Jones,
Lafayette, Lamar, Lee,
Leflore, 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, FEMA-1365-DR April 3-5
Leake, Lee, Neshoba, and Severe storms and
Pontotoc flooding

Counties of George, Hancock, FEMA-1382-DR June 6-13
Harrison, Jackson, and Pearl Tropical Storm
River Allison

Counties of Benton, Bolivar, FEMA-1398-DR November 24-25
Coahoma, DeSoto, Grenada, Severe storms and
Hinds, Humphreys, Lafayette, tornadoes
Leake, Marshall, Madison,
Panola, Prentiss, Quitman,
Scott, Sunflower,
Tallahatchie, Tate, Tippah,
Tunica, and Washington

MONTANA
County of Big Horn and Crow FEMA-1377-DR April 8-9
Indian Reservation Severe storms

Counties of Gallatin, FEMA-1385-DR June 3-14
Missoula, and Powell Severe storms

NEBRASKA
Counties of Banner, Blaine, FEMA-1373-DR April 10-23
Box Butte, Brown, Chase, Severe storms
Cherry, Cheyenne, Custer,
Deuel, Dundy, Gage, Garden,
Hayes, Hooker, Johnson,
Keith, Keya Paha, Kimball,
Lincoln, Logan, McPherson,
Morrill, Nuckolls, Perkins,
Rock, Saline, Sioux, and
Thomas

Dakota County FEMA-1394-DR August 17-18
Severe storms and
flooding

NEW HAMPSHIRE
Counties of Cheshire, Coos, FEMA-3166-EM March 5-7
Grafton, Hillsborough, Snowstorm
Merrimack, Rockingham, and
Strafford

NEW JERSEY
All counties FEMA-3169-EM September 11
Terrorist attack

NEW YORK
Counties of Albany, Allegany, FEMA-1391-DR September 11
Bronx, Broome, Cattaraugus, Terrorist attack
Cayuga, Chautauqua, Chemung,
Chenango, Clinton, Columbia,
Cortland, Delaware, 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, FEMA-1376-DR March 1-August 9
Benson, Bottineau, Burleigh, Floods
Cass, Cavalier, Dickey, Eddy,
Foster, Golden Valley, Grand
Forks, Grant, Griggs, Kidder,
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, FEMA-1390-DR July 17-18
Clermont, and Hamilton Severe storms and
flooding

OKLAHOMA
Counties of Adair, Atoka, FEMA-1355-DR December 25, 2000-
Beckham, Blaine, Bryan, Severe winter storm January 10, 2001
Caddo, Canadian, Carter,
Cherokee, Choctaw, Cleveland,
Coal, Comanche, Cotton,
Craig, Creek, Custer,
Delaware, Garfield, Garvin,
Grady, Greer, Harmon,
Haskell, Hughes, Jackson,
Jefferson, 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, FEMA-1384-DR May 27-30
Beaver, Beckham, Blaine, Severe storms
Bryan, Caddo, Canadian,
Carter, Choctaw, Cimarron,
Coal, Comanche, Cotton,
Custer, Dewey, Ellis,
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 9-10
Severe storms and
flooding

PENNSYLVANIA
Counties of Bucks and FEMA-1383-DR June 15-17
Montgomery Tropical Storm
Allison

PUERTO RICO
Municipalities of Adjuntas, FEMA-1372-DR May 6-11
Anasco, Cabo Rojo, Guanica, Flooding
Guayanilla, Hormigueros,
Lajas, Lares, Las Marias,
Maricao, Moca, Rincon,
Sabana Grande, San German,
and Yauco

Municipalities of Aguas FEMA-1396-DR November 7-9
Buenas, Barranquitas, Severe storms and
Bayamon, Ciales, Corozal, flooding
Jayuya, Juncos, Morovis,
Naranjito, Orocovis, San
Lorenzo, Utuado, and Vega
Alta

SOUTH DAKOTA
Counties of Beadle, FEMA-1375-DR March 1-April 30
Brookings, Brown, Buffalo, Severe storms
Clark, Codington, Day, Deuel,
Edmunds, Grant, Gregory,
Hamlin, Hanson, Jerauld,
Kingsbury, Marshall,
Mellette, Moody, Roberts,
Sanborn, Spink, Todd, Tripp,
and Turner

TENNESSEE
Counties of Carter, Cocke, FEMA-1387-DR July 27-August 22
Greene, Johnson, Shelby, Severe storms and
Unicoi, and Washington flooding

TEXAS
Counties of Armstrong, FEMA-1356-DR December 12, 2000-
Bailey, Bowie, Borden, Severe winter storm January 15, 2001
Briscoe, Carson, Cass,
Cherokee, Cooke, Crosby,
Dawson, Deaf Smith, Delta,
Fannin, Floyd, Franklin,
Gains, Garza, Gray, Grayson,
Gregg, Hall, Harrison,
Hemphill, Hopkins, Hunt,
Lamar, 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, FEMA-1379-DR June 5-July 20
Angelina, Brazoria, Cherokee, Severe storms and
Chambers, Fort Bend, flooding
Galveston, Grimes, Hardin,
Harris, Harrison, Houston,
Jasper, Jefferson, Leon,
Liberty, Madison, Montgomery,
Nacogdoches, Newton, Orange,
Polk, Sabine, San Augustine,
San Jacinto, Shelby, Smith,
Trinity, Tyler, Walker, and
Waller

VERMONT
Counties of Addison, FEMA-3167-EM March 5-7
Bennington, Chittenden, Grand Snowstorm
Isle, Lamoille, Orleans,
Rutland, Windham, and Windsor

VIRGINIA
Counties of Bath, Buchanan, FEMA-1386-DR July 8-August 27
Dickenson, Lee, Russell, Severe storms and
Scott, Smyth, Tazewell, flooding
Washington, and Wise

County of Arlington FEMA-1392-DR September 11
Terrorist attack

WASHINGTON
Counties of Benton, Chelan, FEMA-1361-DR February 28-
Clallam, Clark, Cowlitz, Earthquake March 16
Grays Harbor, Island,
Jefferson, King, Kitsap,
Kittitas, Lewis, Mason,
Pacific, Pierce, Skagit,
Skamania, Snohomish,
Thurston, Wahkiakum,
Whatcom, and Yakima

WEST VIRGINIA
Counties of Boone, Cabell, FEMA-1378-DR May 15-September 4
Calhoun, Clay, Doddridge, Severe storms and
Fayette, Greenbrier, flooding
Kanawha, Lincoln, Logan,
Marion, Mason, McDowell,
Mercer, Mingo, Nicholas,
Preston, Putnam, Raleigh,
Roane, Summers, Taylor,
Wayne, and Wyoming

WISCONSIN
Counties of Adams, Ashland, FEMA-1369-DR April 10-July 6
Barron, Bayfield, Buffalo, Flooding
Burnett, Calumet, Chippewa,
Clark, Crawford, Douglas,
Dunn, Grant, Iron, Jackson,
Juneau, La Crosse, Outagamie,
Pepin, Pierce, Polk, Portage,
Rusk, St. Croix, Taylor,
Trempealeau, Vernon,
Washburn, Waupaca, Waushara,
Winnebago, and Wood

<<END RULING>>

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