M1CAT: Casualty and Theft (2024)

Who files this form

Use 2024 Schedule M1CAT to report gains and losses from casualties and thefts. Attach it, along with Schedule M1SA, Minnesota Itemized Deductions, to your Minnesota income tax return.

Complete a separate Schedule M1CAT through line 12 for each casualty or theft event involving personal property not used in a trade or business or for income-producing purposes.

Do not complete Schedule M1CAT if you completed federal Form 4684 to report a net gain from a casualty or theft on your federal income tax return.

What you'll need

Have the following information available to complete the schedule:

• Your name and Social Security number.
• Each property's type, location, and date acquired.
• The property's cost or other basis, usually its original cost plus improvements.
• Insurance coverage and other reimbursements received or expected, whether or not you filed a claim.
• Fair market value immediately before and after the casualty or theft. This is generally determined by a competent appraisal.
• The amount from line 1 of Form M1.

If you completed federal Form 4684 due to a federally declared disaster area, use its information to complete Schedule M1CAT. Include Schedule M1SA and all Schedules M1CAT with your Minnesota income tax return.

How to file

Attach Schedule M1CAT and Schedule M1SA to your Minnesota income tax return. The supplied text does not give a mailing address or e-file directions.

• Use a separate column on lines 1 through 9 for each item lost or damaged in the same event.
• If an event involved more than four items, complete lines 1 through 9 of additional Schedules M1CAT. Complete lines 10 through 12 only once for that event.
• For multiple events, complete a separate schedule through line 12 for each event. Add all line 12 amounts on line 13 of the first schedule and leave line 13 blank on the others.
• For a net loss, complete the schedule and enter line 20 on line 19 of Schedule M1SA.

Common mistakes

• Leaving out schedules: A refund will be delayed or denied if you do not include all Schedules M1CAT.
• Ignoring insurance because you did not file a claim: Line 3 must include insurance coverage and expected reimbursements, whether or not you filed a claim.
• Deducting an uncertain reimbursement amount too soon: Do not deduct that part of a loss until the tax year when you become reasonably certain it will not be reimbursed.
• Claiming a loss already deducted on an estate tax return: Do not include it.
• Claiming related expenses: Expenses such as treatment of personal injuries or a rental car are not deductible. Costs to protect against future casualties are not deductible and should be capitalized as permanent improvements.
• Treating repair or replacement cost as fair market value automatically: These costs are not necessarily fair market value.

Questions people ask

What types of losses can I deduct?

You can deduct property losses from fire, storm, shipwreck, other casualty, or theft. If the property is insured, you may deduct only the part your policy would not reimburse if you filed a timely claim.

When should I deduct a loss?

Deduct the nonreimbursable part in the tax year the casualty occurred or the theft was discovered. If reimbursement is uncertain, wait to deduct that part until the tax year when you become reasonably certain it will not be reimbursed.

What if I receive a reimbursement after deducting the loss?

Include it in taxable income in the year you receive it, but only to the extent the earlier deduction reduced your taxable income.

Do disaster grants or gifts count as reimbursements?

Grants and other payments count as reimbursements if you must use them specifically to repair or replace your property. If there are no conditions on how you use the money, it is not a reimbursement.

What value do I use for stolen property that was not recovered?

The fair market value after a theft is zero if the property is not recovered.

Official sources

• https://www.revenue.state.mn.us/sites/default/files/2024-12/m1cat-24.pdf