Form 4684 hurricane deductions

[Noralee7055]

Hello, 

We were affected by a federally  declared disaster DR 4673 and have questions filing out this form. We had a small 750 damage to our roof . My question is how to fill out the before event FMV and after event FMV. Would I put 750 before FMV and 0 after FMV?

[MaryK4]

The amount of the fair market value would have to consider the condition of the roof before the damages.  For example, if it were a new roof (installed in 2023) your replacement would be fully deductible so the $750 would be reasonable.  However, if it were an older roof (like installed in 2017) that you would have had to replace in time under normal wear and tear, you would want to adjust the fair market value to reflect that  (so using a ten-year replacement just to make it easy to calculate, you would look at $375 to reflect 50% loss from the hurricane).   

[Noralee7055]

Thanks, Mark! That makes sense but I’m still a bit confused with what I will be putting into turbo tax for 

1. Cost or basis 

2.FMV before event 

3.FMV after event 

is this the amount the house would sell for or does it have to do with the 750 cost incurred? Thanks so much! 

[RobertB4444]

For purposes of this disaster the FMV and the cost basis would all be $750.

So $750 before the event and zero after the event incurring a $750 replacement cost which you can then deduct,

@Noralee7055