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New Member
posted Jun 4, 2019 4:30:23 PM

My rental house in Hawaii was affected by the volcanic eruption in 2018. It's value dropped a lot, but it is still usable. Can I deduct any of the lost value?

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1 Replies
Expert Alumni
Jun 4, 2019 4:30:24 PM

No, unfortunately you cannot deduct the decrease in market value of your rental property. This loss is an unrealized loss which will be realized only when you sell the property.