Claiming hurricane damage on home. What’s the Cost Basis? Value of home? Purchase price of home?

[flsunkitten]

Is the cost basis the purchase price of my home or the amount I paid for damages to my roof done by hurricane Irma.

[Phillip1 · Accepted solution]

The way the casualty and theft loss is designed (focused on the changes in your property values rather the actual cost of repairs) your may be required to make some estimates.

The cost basis of the home is the purchase price of the home plus the cost of any improvements or additions.

There are two home value figures. The first one is the value before the storm (your property tax assessment for the period before the storm might give you a good estimate). The second is the value after the storm (with the damage). The value after the storm may have been given in your insurance appraisals. If not, I would recommend a taking the value before the storm and subtracting the total cost of repairs (including any that was paid by insurance).

You will need the figure that insurance paid to repair the damages as well.