For the Casualty loss, the basis should be the amount you paid. You will then be asked the Fair Market Value before Loss (which should be the replacement value minus the 10% per year- this is the safe harbor) and Fair Market Value after Loss, which is most cases is zero.
Your deduction will be the lower of the cost basis or replacement cost.
The Replacement cost safe harbor method (federally-declared disasters only) is the current cost to replace personal belongings with a new item reduced by 10% for each year owned. Must be used for all personal belongings, with certain exceptions.
@Matt D
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
