When you enter your Casualty Event, remember that there's a $500 deductible to account for.
Let's say you needed a new roof and the cost to replace it was $5,000. Enter the FMV before the Event as $5,000 and the FMV after the Event as $0.
If your insurance paid you $2,000, you should end up with a Casualty Loss of $2,500 ($5,000 less $2,000 insurance less $500 deductible). The difference between the FMV before/after the event is your loss.
Click this link for more info on Reporting a Casualty Loss.
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