Updated October 18, 2026. Quick answer: Part II of Section B on Form 4684 combines every Part I on your return. Lines 29 to 33 cover property held one year or less, and lines 34 to 39 cover property held longer. The results go to Form 4797 or, for income-producing property, to Schedule A.
Related reading on this site: IRS Publication 547.
What this part is for
The part is titled Summary of Gains and Losses (from separate Parts I). The instructions say “Use one Section B, Part II, to combine all Sections B, Part I.” Each Part I is covered at Form 4684 Section B, Part I, and the form as a whole at Form 4684.
The instructions illustrate the idea: “He fills out only one Section B, Part II, to summarize the two losses he is claiming.”
The lines, one by one
| Line | What the form says |
|---|---|
| Line 29 | “Enter on line 29 all gains and losses on property held 1 year or less.” |
| Column (a) | “On lines 29 and 34, use a separate line to identify each casualty or theft.” |
| Column (b)(i) | “Enter the part of line 28 from trade, business, rental, or royalty property.” |
| Column (b)(ii) | “Enter the part of line 28 from” income-producing property. |
| Column (c) | “On line 29, enter the part of line 22 that is from property held for 1 year or less.” |
| Line 30 | “Totals. Add the amounts on line 29” |
| Line 31 | “Combine line 30, columns (b)(i) and (c). Enter the net gain or (loss) here and on Form 4797, line 14.” |
| Line 32 | “Enter the amount from line 30, column (b)(ii), here.” |
| Line 33 | “Casualty or theft gains from Form 4797, line 32” |
| Line 34 | “Enter on line 34 all gains and losses on property held more than 1 year”, except as provided in the instructions for line 33. |
| Line 35 | “Total losses. Add amounts on line 34, columns (b)(i) and (b)(ii)” |
| Line 36 | “Total gains. Add lines 33 and 34, column (c)” |
| Line 37 | “Add amounts on line 35, columns (b)(i) and (b)(ii)” |
| Line 38 | “If the loss on line 37 is more than the gain on line 36:” |
| Line 38a | “Combine line 35, column (b)(i), and line 36, and enter the net gain or (loss) here.” |
| Line 38b | “Enter the amount from line 35, column (b)(ii), here.” |
| Line 39 | “If the loss on line 37 is less than or equal to the gain on line 36, combine lines 36 and 37 and enter here.” |
The form’s column headings split losses into (i) trade, business, rental, or royalty property and (ii) income-producing property, with gains in column (c). The amounts sit in a grid that this page does not reproduce, so read the headings on your own form.
Where the number comes from
Column (b)(i) and (b)(ii) both come from line 28 of each Part I. The instructions define the second category this way: income-producing property “is property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art.”
For line 30, “Include in the total any amounts from the additional sheet you attached because you had more than two casualties or thefts on line 29.” Line 35 has a matching instruction for line 34.
Line 33 is the exception to the holding period split: “If recapture applies, complete Form 4797, Part III, and this line, instead of Form 4684, line 34.”
Where it goes next
Line 31: “If Form 4797, Sales of Business Property, isn’t otherwise required, enter the amount from this line on your Schedule 1 (Form 1040), line 4 and check the” 4684 box. See Schedule 1 (Form 1040) for that schedule.
Line 32 for individuals: “Individuals, enter the amount from income”-producing property on “Schedule A (Form 1040), line 16”. Read Schedule A (Form 1040) for the schedule. “Estates and trusts, enter the amount from line 32 on the” “Other deductions” line of the return.
Line 38a: “All others, enter this amount on Form 4797, line 14.” Line 39: “All others, enter this amount on Form 4797, line 3”. For partnerships and S corporations: “Partnerships, enter the amount from line 38a, 38b, or 39 on Form 1065, Schedule K, line 11.”
Edition and line numbers
This page reads Form 4684 for 2025 and its 2025 instructions, the current files irs.gov served on 2026-10-18. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Filing a Part II for each casualty. The instructions say “Use one Section B, Part II, to combine all Sections B, Part I.”
- Entering line 33 gains on line 34. The instructions say “If recapture applies, complete Form 4797, Part III, and this line, instead of Form 4684, line 34.”
- Mixing column (b)(i) and (b)(ii). The instructions say “Enter the part of line 28 from trade, business, rental, or royalty property.” for column (b)(i).
Related: Form 4684, Schedule 1 (Form 1040), Schedule A (Form 1040), and casualty losses after the 2017 tax law.
Sources
- Form 4684 (2025), Casualties and Thefts: https://www.irs.gov/pub/irs-pdf/f4684.pdf
- 2025 Instructions for Form 4684: https://www.irs.gov/pub/irs-pdf/i4684.pdf
- IRS: About Form 4684: https://www.irs.gov/forms-pubs/about-form-4684
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.