Quote:
Originally Posted by Eagle5US
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 (720K), and subtract "what someone would pay for the home" after the damage but before it was fixed (433K). Add the insurance settlement (74K), then subtract $100. Whichever the smaller number should be used for the calculated loss. Ummm - what? |
I do my own long form taxes manually for years (although I have not lost a home).
In the absence of any other information, if faced with what you describe - and I've seen worksheets way worse than this - my approach would be (728K-433K) = 295K. 73,900 is smaller. (It's also a rip, but if that's what they say...)
But, you have a lot of dinero involved here; I'd pay a reasonable piece of folding money to get a pro answer to that question. I'd really be interested to hear that answer.
And I wish you the best. Jeebers. The tax code is so hosed.