6 roof tiles were damaged during Hurricane Irma; repairs $1200; roof was replaced in 2005 for $33,100. How do I figure what to enter on cost basis on form 4684, line 2?

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1 Best answer

Expert Alumni

Jun 6, 2019 10:23:41 AM

You can use the $1200 as the Cost Basis for this event. The FMV before the casualty was $1200; after the casualty, $0.

If you received insurance reimbursement, that will be subtracted from the $1200.

Basically you are trying to claim the amount you paid out of pocket (or your deductible).

Here's more info:

Expert Alumni

Jun 6, 2019 10:23:41 AM

You can use the $1200 as the Cost Basis for this event. The FMV before the casualty was $1200; after the casualty, $0.

If you received insurance reimbursement, that will be subtracted from the $1200.

Basically you are trying to claim the amount you paid out of pocket (or your deductible).

Here's more info: