Hurricane Ian Loss questions

[masterjedi73]

We had roof and lanai damage.  

I've gotten to the casualty losses section, and headed to personal property.

Now I need help:

For Description of Property do I put house, or roof/lanai?

Is the cost basis what the insurance said the damages were worth, or is that the approximate house value?

Is the insurance reimbursement what they paid, or do I include the deductible?

On the next page, it asks for Fair Market Value before and after.  Is the the approximate house value?

Where do I put items insurance didn't cover?  Is the deductible included in that?

Thanks!

[MonikaK1]

Under current law, only damage attributable to a Federally declared disaster is deductible as a casualty loss (except for business property). 

If the damage was to areas that are part of your house, such as the roof and lanai, you can enter "house". For damage to personal property not attached to the house, list those items separately.

Your cost basis is generally what you paid for the house, plus the cost of any improvements to the house; for example, if the damaged roof had been replaced before the casualty.

The insurance reimbursement is the actual amount paid. The deductible is part of what wasn't paid by insurance. You must have applied for any available insurance reimbursement.

The fair market value before the loss is what the house or the item would have sold for on the open market immediately before the casualty. The fair market value after the casualty is what the house or item would have sold for on the open market after the casualty. If an item was completely destroyed or lost, the FMV after the casualty is zero.

For more information, please see IRS Publication 547 and this TurboTax help article.

[masterjedi73]

Thank you!

So where do I put out of pocket expenses, that were not covered by insurance?  Example:  Deductible, trees lost, stump grinding, etc...

[Vanessa A]

If you were in a federally declared disaster zone then you would take the following steps to enter your deductibles and other losses/expenses. 

• Federal
• Deductions and Credits
• Show More next to Other Deductions
• Start next to Casualties and Thefts
• Enter the Description, Date and Property Type
• When you select Personal property, you will need to select the special tax treatment.  
• When you click next you will need to enter the FEMA disaster code.  
• Continue through the entries repeating the steps until you enter all of your losses

[ALDMLD91]

Hello, there was flooding to the first floor of my primary residence. The floors and foundation had to be repaired with renovations. The claims filed with FEMA was denied due to home was still livable on the 2nd floor. Insurance denied claim due to water intrusion was result of flooding which is not covered by the standard insurance policy. You must have a separate flood insurance policy. Therefore, out of pocket expenses were unreimbursed. I do not have FMV for casualty losses and we have incurred the total expense of repairs. How do we file our taxes to expense the federal disaster claim DR-4673 on 2022 TurboTax? Thoughts?

[AmyC]

You can probably use the cost of repairs to restore your house to its former condition for the decrease in FMV.  See the rules below for limitations.

Publication 547, Casualties, Disasters, and Thefts states: 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 isn’t, due to the repairs, more than the value of the property before the casualty.

People often forget to include their landscaping that was damaged. Fence, plants, etc also count!

@ALDMLD91