The casualty adjustment should be allocated to both the building and the land. The portion for the seawall repair obviously relates to the land. The balance would be used for the building.
You have the option to allocate the adjustment using any reasonable method. That could be the county appraisal, the value before the loss, or the actual expenses needed to restore each portion of the property.
Remember that land is not depreciated, so any adjustment would be applied only to the land basis.
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