Roof destroyed 2015. Ins denied. Lawyer said he could get ins co to pay. 1/17 Lawyer busy - find another. Paying myself now. Can I claim loss this yr or amend last year?

[alismom13]

How do I calculate value of loss. Roof was 8 yrs old? Also what about cost of emergency repairs while waiting for Ins co?

[bwa]

What destroyed the roof?  (A hurricane, fire, gradual deterioration, etc.?)

[alismom13]

Hail storm, per 4 roofers, public adjuster and lawyer. Also surrounding homes damaged. Those Ins co paid to replace roofs. Mine refused.

[bwa · Accepted solution]

It would be a casualty loss which may or may not be a tax benefit.

A personal casualty loss (including a theft) is deductible if you itemize deductions. The measure of a casualty loss is the fair market value before the casualty, less the fair market value after, less any insurance proceeds. The decrease in market value can be estimated by repair costs that restore the property to its prior condition.Ancillary costs such as legal fees or emergency repairs unfortunately aren't deductible.  Actual repairs if they restore the roof to the pre-storm condition can be used to determine the amount of the decline in value.

If deductible, the loss must first be reduced by $100, and any remainder is deductible to the extent it exceeds 10% of your adjusted gross income. As examples, if your loss is -

• 500, you have no deductible loss if your adjusted gross income is over $4,000
• 1,000, you have no deductible loss if your adjusted gross income is over $9,000

Tax topic 515 has more information and links regarding casualty losses.

Casualty losses are under the deductions and credits tab under the very last item ("Other Deductions and Credits.")