Professional Soldiers ® - View Single Post - Tax Question

**Eagle5US** · 02-15-2023, 17:53

For those smarter than me:

I understand that I can claim hurricane losses on taxes. I have read the literature on it but do not yet understand it.

Bought the house for $320K, Current MARKET value is $720K per the bank. Current CASH value on my affidavit of loss is $433K, and damage on the affidavit is $198K. Insurance reimbursement for damage $74K. (So many numbers

)

Instructions are to take the "Value of the home" before the damage, and subtract "what someone would pay for the home" after the damage but before it was fixed. Add the insurance settlement, then subtract $100. Whichever the smaller number should be used for the calculated loss. Ummm - what?

Which values do I use? Purchase minus $198K? Market minus $198K? Cash Value minus $198K? Are any of these values what I should use to determine "what someone would pay for the damaged home"? With the repairs came "upgrades" - another variable. Realizing I need to be consistent with one set of numbers - but the ratio of loss is SIGNIFICANTLY different between the three.

Any legit help would be appreciated.

Thanks-
Joe

02-15-2023, 17:53	#1
Eagle5US Quiet Professional Join Date: Jan 2004 Location: Tampa Posts: 2,529	Tax Question - hurricane loss? For those smarter than me: I understand that I can claim hurricane losses on taxes. I have read the literature on it but do not yet understand it. Bought the house for $320K, Current MARKET value is $720K per the bank. Current CASH value on my affidavit of loss is $433K, and damage on the affidavit is $198K. Insurance reimbursement for damage $74K. (So many numbers ) Instructions are to take the "Value of the home" before the damage, and subtract "what someone would pay for the home" after the damage but before it was fixed. Add the insurance settlement, then subtract $100. Whichever the smaller number should be used for the calculated loss. Ummm - what? Which values do I use? Purchase minus $198K? Market minus $198K? Cash Value minus $198K? Are any of these values what I should use to determine "what someone would pay for the damaged home"? With the repairs came "upgrades" - another variable. Realizing I need to be consistent with one set of numbers - but the ratio of loss is SIGNIFICANTLY different between the three. Any legit help would be appreciated. Thanks- Joe __________________ Primum non Nocere "I have hung out in dangerous places a lot over the years, from combat zones to biker bars, and it is the weak, the unaware, or those looking for it, that usually find trouble. Ain't no one getting out of this world alive. All you can do is try to have some choice in the way you go. Prepare yourself (and your affairs), and when your number is up, die on your feet fighting rather than on your knees. And make the SOBs pay dearly." The Reaper-3 Sep 04
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