Personal residence and contents fire

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  • JenMO
    Senior Member
    • Apr 2007
    • 974

    #1

    Personal residence and contents fire

    Client lost whole house and contents in house fire. They had insurance and it paid a total loss, $154,000. They rebuilt in the same place and close to the same size house, but it cost $188,000. This includes contents, too. Is this a casualty loss? deductible on Sch A? Not sure how to handle.
  • spanel
    Senior Member
    • Oct 2008
    • 845

    #2
    Originally posted by JenMO
    Client lost whole house and contents in house fire. They had insurance and it paid a total loss, $154,000. They rebuilt in the same place and close to the same size house, but it cost $188,000. This includes contents, too. Is this a casualty loss? deductible on Sch A? Not sure how to handle.
    Your going to have to find out her cost and the FMV at the date of the fire to see if they have a loss. Cost to rebuild is not factored into the loss.

    Chris

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    • TAXNJ
      Senior Member
      • Jan 2007
      • 2106

      #3
      Originally posted by JenMO
      Client lost whole house and contents in house fire. They had insurance and it paid a total loss, $154,000. They rebuilt in the same place and close to the same size house, but it cost $188,000. This includes contents, too. Is this a casualty loss? deductible on Sch A? Not sure how to handle.
      See TTB starting on page 4-20 (which includes summary chart) as it may apply to your scenario.
      Always cite your source for support to defend your opinion

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