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
| Line | What 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 filed | Skip 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, 1984 | Skip 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 nonspouse | Fill 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.
| Line | Entry | Value |
|---|---|---|
| 1 | Purchase price (invented) | $300,000 |
| 2 | Seller-paid points not already subtracted from line 1 (invented) | $3,000 |
| 3 | Line 1 minus line 2 (computed) | $297,000 |
| 4a | Abstract and recording fees (invented) | $400 |
| 4b | Legal fees (invented) | $1,200 |
| 4c | Survey fees (invented) | $500 |
| 4d | Title insurance (invented) | $1,500 |
| 4e | Transfer or stamp taxes (invented) | -0- |
| 4f | Amounts the seller owed that you agreed to pay (invented) | -0- |
| 4g | Other (invented) | $400 |
| 5 | Lines 4a through 4g added (computed) | $4,000 |
| 6 | Additions and improvements (invented) | $28,000 |
| 7 | Special tax assessments for local improvements (invented) | $2,500 |
| 8 | Other increases to basis (invented) | -0- |
| 9 | Lines 3, 5, 6, 7 and 8 added (computed) | $331,500 |
| 10 | Depreciation allowed or allowable, the printed 0 in column (a) (computed) | -0- |
| 11 | Other decreases to basis (invented) | $5,000 |
| 12 | Lines 10 and 11 added (computed) | $5,000 |
| 13 | Line 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).
| Line | Entry | (a) Personal part | (b) Business/rental part |
|---|---|---|---|
| 1 | Purchase price, allocated by use (invented inputs; line 3 is computed from them) | $360,000 | $40,000 |
| 3 | Line 1 minus line 2, with -0- on line 2 (computed) | $360,000 | $40,000 |
| 5 | Settlement costs, lines 4a through 4g added (invented amounts; computed total) | $3,600 | $400 |
| 6 | Additions and improvements (invented) | $20,000 | $5,000 |
| 9 | Lines 3, 5, 6, 7 and 8 added (computed) | $383,600 | $45,400 |
| 10 | Depreciation allowed or allowable (invented; the printed 0 stays in column (a)) | -0- | $6,000 |
| 12 | Lines 10 and 11 added (computed) | -0- | $6,000 |
| 13 | Line 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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Answer againSources
- Publication 584 (12-2025), Casualty, Disaster, and Theft Loss Workbook: IRS archived PDF (irs.gov)
- IRS, Publication 584, Casualty, Disaster, and Theft Loss Workbook: https://www.irs.gov/forms-pubs/about-publication-584
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.