We had to put a new roof on our house in 2024 due to the extensive leaks and saturated boards from Hurricane Helene. We filed insurance; however, they denied us stating roof was not properly put on when house was built in 2016. We obtained multiple quotes and have that as the FMV to record using publication 547 for Federal Disaster method contractor safe harbor. We paid 100% out of pocket for the roof. After the insurance denial, we filed for FEMA assistance, which is still pending review.
I filed an extension from the May deadline the IRS set for those in the disaster area in SC. However, with the extension deadline approaching, do I go ahead and file our 2024 taxes posting the loss at the cost to replace the roof? What do I do since I cannot reasonably estimate any reimbursement? Do I just record any funds received on my 2025 return as income after consideration for the cost we paid or for the benefit we receive if any from our 2024 tax return filing? Or, do I file an amended return for 2024 in 2025 if FEMA issues us reimbursement?
Don't want to make a mistake!
