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Deductions & credits
Your cost basis is the amount you have into it. FEMA would not provide you with this number.
For instance, if you paid $200,000 for your home, that would be your cost basis of your home. If you had trees that you planted over the years or a car that was flooded out, your cost basis would be the amount you paid for the trees or the car.
Figuring a Loss
To determine your deduction for a casualty or theft loss, you must first figure your loss.
Amount of loss.
Figure the amount of your loss using the following steps.
- Determine your adjusted basis in the property before the casualty or theft.
- Determine the decrease in fair market value (FMV) of the property as a result of the casualty or theft.
- From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive.
- For personal-use property, apply the deduction limits, discussed later, to determine the amount of your deductible loss.
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March 24, 2025
5:53 AM