Thank you PatriciaV! That is very helpful.
So, in my example, my land "basis" changes from $100,000 to $29,000 if I apply the full $71,000 Casualty Loss to the seawall. When I replace the seawall, do I then simply "reverse" this adjustment?
Concerning the building, do I need to also reduce that basis by the $64,000 insurance payout? This money was spent to restore the property (other than the seawall) to its pre-storm condition.
Thank you again for your guidance!
