Max W Posted October 15, 2022 Report Share Posted October 15, 2022 Client's house burned down in a fire in 2017. It has been rebuilt. LY he rented out half his house. What is the basis? Is it original purchase basis, just before fire, after fire, or when? The new house is slightly smaller than the one that burned, but it is essentially the same. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted October 15, 2022 Report Share Posted October 15, 2022 If the insurance company paid for the rebuild and the taxpayer did not kick anything in other than deductibles, then the basis is the same as before the fire (plus any out of pocket improvements after rebuild). Tom Longview, TX 2 Quote Link to comment Share on other sites More sharing options...
Max W Posted October 16, 2022 Author Report Share Posted October 16, 2022 2 hours ago, BulldogTom said: If the insurance company paid for the rebuild and the taxpayer did not kick anything in other than deductibles, then the basis is the same as before the fire (plus any out of pocket improvements after rebuild). Tom Longview, TX Sounds good, Tom. Thanks Quote Link to comment Share on other sites More sharing options...
Lee B Posted October 16, 2022 Report Share Posted October 16, 2022 Here is a lengthy article in The Tax Advisor about this subject: https://www.thetaxadviser.com/issues/2018/may/casualty-losses-expenditures-sec-162-165.html 2 Quote Link to comment Share on other sites More sharing options...
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