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Pub 584 Worksheet A: Adjusted Basis of a Damaged Home

Updated November 6, 2026. Quick answer: Worksheet A in Publication 584 figures the cost or other (adjusted) basis of a home that was damaged or destroyed: purchase price, less seller-paid points, plus closing costs, improvements and special assessments, minus depreciation and other decreases. Line 13 goes on line 2 of Schedule 20 of the workbook and from there to Form 4684.

What the worksheet is for

Publication 584 is the workbook for listing property lost to a casualty or theft. Its Schedule 20 takes one home at a time, and the first figure it needs is the basis of the home. “Cost or other (adjusted) basis of property (from Worksheet A, line 13)” is line 2 of that schedule. The caution on the worksheet is “See the Worksheet A Instructions before you use this worksheet.” After the schedule, the column (a) entries from line 1 and lines 2 to 9 are transferred to the matching lines of Form 4684, Section A (“Next: Transfer the entries from line 1”) The business and rental column goes to Section B instead; see the Section A page and the casualty loss rules.

The thirteen lines

LineWhat it asks
1“Enter the purchase price of the home damaged or destroyed.”
2“Seller paid points for home bought after 1990.” “Don’t include any seller-paid points you already subtracted to arrive at the amount entered on line 1”
3“Subtract line 2 from line 1”
4a to 4g“Settlement fees or closing costs.” The seven sub-lines are abstract and recording fees, legal fees, survey fees, title insurance, transfer or stamp taxes, amounts the seller owed that you agreed to pay, and other.
5“Add lines 4a through 4g”
6“Cost of additions and improvements.”
7“Special tax assessments paid for local improvements, such as streets and sidewalks”
8“Other increases to basis”
9“Add lines 3, 5, 6, 7, and 8”
10“Depreciation allowed or allowable, related to the business use or rental of the home”, with a 0 printed in column (a)
11“Other decreases to basis”
12“Add lines 10 and 11”
13“Cost or other (adjusted) basis of home damaged or destroyed. Subtract line 12 from line 9.” “Enter here and on Schedule 20, line 2”

Columns: “you must allocate the entries on Worksheet A between the personal part (column (a)) and the business/rental part (column (b)).” Line 4 has its own skip rule: if line 1 already includes the adjusted basis of the new home from Form 2119 (“Settlement fees or closing costs.”), lines 4a to 4g and 5 are skipped and the worksheet continues at line 6.

How you got the home changes which lines you fill in

If you…Then
Inherited from a decedent who died before or after 2010, or in 2010 with no Form 8939 filedSkip lines 1 to 4. Find the basis under Inherited Property in Pub. 551, enter it on line 5, and fill out lines 6 to 13.
Received as a gift“read Property Received as a Gift in Pub. 551 and enter on lines 1 and 3 of the worksheet either the donor’s adjusted basis or the home’s fair market value at the time of the gift, whichever is appropriate.”
Received in a trade for other property“enter on line 1 of the worksheet the fair market value of the other property at the time of the trade.”
Built the home“add the purchase price of the land and the cost of building the home. Enter that total on line 1 of the worksheet.”
Received from your spouse after July 18, 1984Skip lines 1 to 4, then “enter on line 5 of the worksheet your spouse’s cost or other (adjusted) basis in the home just before you received it.”
Owned jointly with a nonspouseFill out lines 1 to 13. Then “multiply the amount on line 13 by your percentage of ownership to get the adjusted basis of your part-interest.”
Damaged before by an earlier casualty“on line 8 of the worksheet, enter any amounts you spent to restore the home to its condition before the prior casualty.”

The workbook lists more cases than these: a home received from a spouse before July 19, 1984, joint ownership with a spouse who died before 2010, and the two seller-paid points dates. Check the full table in the workbook for those. The one carve-out printed above the table is “Don’t use this worksheet to determine your basis if you acquired an interest in your home from a decedent who died in 2010 and whose executor filed Form 8939”.

Two worked examples (invented numbers)

Example 1 (computed): a home used entirely as a residence, so only column (a) is filled in.

LineEntryValue
1Purchase price (invented)$300,000
2Seller-paid points not already subtracted from line 1 (invented)$3,000
3Line 1 minus line 2 (computed)$297,000
4aAbstract and recording fees (invented)$400
4bLegal fees (invented)$1,200
4cSurvey fees (invented)$500
4dTitle insurance (invented)$1,500
4eTransfer or stamp taxes (invented)-0-
4fAmounts the seller owed that you agreed to pay (invented)-0-
4gOther (invented)$400
5Lines 4a through 4g added (computed)$4,000
6Additions and improvements (invented)$28,000
7Special tax assessments for local improvements (invented)$2,500
8Other increases to basis (invented)-0-
9Lines 3, 5, 6, 7 and 8 added (computed)$331,500
10Depreciation allowed or allowable, the printed 0 in column (a) (computed)-0-
11Other decreases to basis (invented)$5,000
12Lines 10 and 11 added (computed)$5,000
13Line 9 minus line 12 (computed)$326,500

The adjusted basis on line 13 is $326,500 (computed), which is the figure for Schedule 20, line 2.

Example 2 (computed): part of the property is used for business, so each entry is allocated. The allocations and the home-office depreciation are invented; the printed 0 stays on line 10 in column (a).

LineEntry(a) Personal part(b) Business/rental part
1Purchase price, allocated by use (invented inputs; line 3 is computed from them)$360,000$40,000
3Line 1 minus line 2, with -0- on line 2 (computed)$360,000$40,000
5Settlement costs, lines 4a through 4g added (invented amounts; computed total)$3,600$400
6Additions and improvements (invented)$20,000$5,000
9Lines 3, 5, 6, 7 and 8 added (computed)$383,600$45,400
10Depreciation allowed or allowable (invented; the printed 0 stays in column (a))-0-$6,000
12Lines 10 and 11 added (computed)-0-$6,000
13Line 9 minus line 12 (computed)$383,600$39,400

Line 13 is $383,600 in column (a) and $39,400 in column (b) (computed). Column (b) is lower because $6,000 of depreciation comes off.

Edition

This page reads Publication 584 (12-2025), the file irs.gov served on 2026-11-06 (archived copy below). Worksheet A is on page 26 and its instructions on pages 27 and 28 of that edition. Dates in the instruction table, such as July 18, 1984, are printed in that edition.

Common mistakes

  • Using this worksheet for a home inherited from someone who died in 2010 when the executor filed Form 8939. The caution says to use the executor’s information or Pub. 4895 instead.
  • Counting seller-paid points twice. Line 2 is only for points not already subtracted to reach line 1.
  • Leaving depreciation off for the business or rental part. Line 10 is where it comes out of the basis.
  • Treating line 13 as the loss. It is only the basis; the loss figure is built on Schedule 20 and Form 4684.

Related: Form 4684 Section A, casualty losses after the 2017 tax law, and Form 4684.

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Sources

Read from the IRS documents linked above on November 6, 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.

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