topic Re: Had a house fire April 2018 in Get your taxes done using TurboTax

Had a house fire April 2018

Nashorn — Wed, 01 May 2019 03:25:28 GMT

Had a house fire in a non fed declare area.
What deductions if any will be have for tax year 2018?
Also if insurance pays me $100k to replace personal items but same insurance inventory items and appraisers them to be worth $200 K
Would I still have a cap grain if I didn’t replace items?
Thanks for any help

Re: Had a house fire April 2018

Anonymous_ — Fri, 20 Dec 2024 05:48:05 GMT

Re: Had a house fire April 2018

Nashorn — Wed, 01 May 2019 06:34:41 GMT

It’s not a rental

Re: Had a house fire April 2018

Anonymous_ — Fri, 20 Dec 2024 05:48:15 GMT

Re: Had a house fire April 2018

Nashorn — Wed, 01 May 2019 20:20:47 GMT

Sorry to be so ignorant but can you explain this?
“adjusted basis in the property”

Re: Had a house fire April 2018

Anonymous_ — Fri, 20 Dec 2024 05:48:27 GMT

Re: Had a house fire April 2018

NCperson — Thu, 02 May 2019 17:14:01 GMT

can we go back to the original question as this is rather simple

$200,000 of personal property was lost in a fire. The insurance company paid $100,000 under the claim

whether or not the money is used to replace the destroyed items there are no tax consequences as long as what you paid for the personal property that was lost originally cost you at least $100,000. . It is a reimbursement from insurance and is not taxable.

The $100,000 that was NOT paid by the insurance company is not deductible as it's a personal loss which are no longer tax deductible

again, nothing about this situation will impact your tax filing

Re: Had a house fire April 2018

Nashorn — Thu, 02 May 2019 18:47:52 GMT

Thanks I think this was the answer I was hoping for.
Insurance loss inventory is at 200K but my my coverage is only 100 K.
I know fed has no deduction for 2018 but I wonder if California local tax still has a deduction?

Re: Had a house fire April 2018

Anonymous_ — Mon, 16 Dec 2024 14:22:10 GMT

Re: Had a house fire April 2018

Bees — Thu, 09 May 2019 17:59:29 GMT

There is no casualty loss available under the new tax laws for personal use property.

Uncertain how this helped out middle american or created jobs.

https://www.mileiq.com/blog/how-changes-to-tax-law-affect-fire-and-casualty-loss-tax-deduction/

Re: Had a house fire April 2018

NCperson — Thu, 09 May 2019 21:50:10 GMT

are you assuming that any change to the tax law is intended to help the middle class or create jobs?

aren't tax law changes number of 'puts and takes' (i.e. "compromises") to meet a political agenda?

wasn't the elimination of effectively all misc deductions a 'put', but there were other 'takes' that made up for it?