Taxpayer has a casualty loss that will lower taxes in California for 2024 (but not on the Federal return since it is not related to a declared disaster).
Taxpayer also plans to sell the house in 2025. I am thinking forward to the capital gains taxes that will be owed upon sale of the house.
My question: How does the casualty loss in 2024 impact the cost basis of the house? Will the California and Federal cost bases differ if the casualty loss is taken in California?
