Thank you for the input. The IRS doesn't allow a deduction for the loss of value due to the disaster, but rather only a deduction for the damage to the home, and subsequent lower FMV. Only the damage can be used to arrive at a lower FMV, so while the repair would add to the cost basis, how is the "after event" FMV calculated without taking into consideration the cost to return the home to its prior condition? I need to arrive at a FMV after the casualty loss. We have a good idea of the FMV prior to the loss.
