Determining Cost Basis for Casual Loss

[Boxster98]

We experienced 2 casual losses during hurricanes Helene and Milton.  During Helene, we had loss of earth and settling of our paver deck and needed the pool restored due to salt water intrusion, and our landscaping was also impacted by salt water saturation.  During Milton, our palm trees were devastated by the wind.  We had to have new grass laid, palm trees removed, and new plants installed, none of which were an insurable loss.

How do I determine the cost basis for the landscaping that existed when we bought the house, the pool which existed but was remodeled after we bought the house, and the decking which we had installed after buying the house?  The cost of some of the decking was lumped in with the pool remodel.

[PatriciaV]

Your best option is to consult a local real estate professional who can help you determine the fair market value of your property before the casualty loss. The actual cost to repair these items would increase your cost basis, however, not the change in fair market value.

[Boxster98]

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.

[RobertB4444]

You will take a deduction for your repair cost.  The repair cost is a good measure of your loss of value.  However, you are getting a deduction for it.  It will not add to your basis.  It will restore your basis to what it was before the disaster.

@Boxster98