Sold vacation home in 2018, bought it in 1990. It burned down back in 2002 & cost me $89K to rebuild. Can I add the 89K to my cost basis when I bought it back in 1990?

[taxesohmy2017]

Also note, my insurance company did give me $13,000 at the time called "loss of use" during the renovation time.  Would I subtract that $13,000 from the 89K for the rebuild and apply $76K difference to my cost basis.  

This was not used for rental at all. Strictly used for personal use - vacation home.

Any help would be greatly appreciated.

[Opus 17]

Did you take a casualty loss deduction on your tax return when it burned down?  How much of the $89K was covered by insurance?  Only loss of use?  They paid nothing toward rebuilding?

[taxesohmy2017]

No I did not take casualty loss deduction on my return back in 2002. I doubled check on that. The $13,000 my insurance company gave me went directly to the place I rented from during the rebuild.

Looking back through my paperwork - the insurance company gave me $45,000 towards the rebuild.  So would I subtract that $45K from the 89K and add the remaining $44K to my cost basis?

From the proceeds of the sale, I was able to pay off the mortgage on the vacation home - any deduction from that? Would this give any tax benefit towards my cost basis?

Thank you

[Opus 17]

Yes, you add the rebuilding costs to your cost basis, but don’t include costs covered by insurance, or costs not used toward the actual rebuilding (such as temporary housing).  

If you had taken a casualty loss, you would have to subtract the amount of the loss deduction from your basis, but you did not.  

[taxesohmy2017]

Thank you Opus 17!