Hurricane Helene losses - how to determine cost basis?

[spblonghorn]

Hello,

Trying to figure out how to find the cost basis for my personal property and dwelling losses (not covered by my flood insurance policy) for 2024 Hurricane Helene.  I have a Proof of Loss form from FEMA but not sure which line is my cost basis.  Can anyone help me figure out how to determine this number?  Thank you!

[Vanessa A]

Your cost basis is the amount you have into it.  FEMA would not provide you with this number.  

For instance, if you paid $200,000 for your home, that would be your cost basis of your home.  If you had trees that you planted over the years or a car that was flooded out, your cost basis would be the amount you paid for the trees or the car.


Figuring a Loss

To determine your deduction for a casualty or theft loss, you must first figure your loss.

Amount of loss.

Figure the amount of your loss using the following steps.

• Determine your adjusted basis in the property before the casualty or theft.
• Determine the decrease in fair market value (FMV) of the property as a result of the casualty or theft.
• From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive.
• For personal-use property, apply the deduction limits, discussed later, to determine the amount of your deductible loss.

[spblonghorn]

thank you, very helpful!  So how far in advance and how far after the hurricane do I need to consider for the decrease in fair market value?  Would it be the fair market value after repairs are completed?

[Vanessa A]

You want to get the Market Value directly before and directly after. You can do this with the help of a realtor.  

The decrease in value would be the amount before the repairs minus the value before the damage.  This would be your loss.