How do I determine FMV for a loss claim of my power lines before and after being severed during excavation

[waltmanfam4]

We had some people working in our yard that accidentally excavated through the main power lines. We had to add an entire new power pole and have them redone. I don't know how to determine FMV before and after.

[rjs · Accepted solution]

You can use the cost of the repairs as a reasonable approximation of the decrease in fair market value. IRS Publication 547 says the following.

You can use the cost of cleaning up or of making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions.

• The repairs are actually made.
• The repairs are necessary to bring the property back to its condition before the casualty.
• The amount spent for repairs isn't excessive.
• The repairs take care of the damage only.
• The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty.