Casualty Loss & Demolition

[Bill Tubbs]

Last year client's home was totally destroyed the building, so am planning on a casualty loss. What was left of the building was not demolished last year, but can I include the demolition costs as part of the casualty loss? The casualty happened last year, so wouldn't all the expenses associated with that single casualty get reported together?

Thanks,
Bill

[Bill Tubbs]

think I answered my own question..

Last year client's home was totally destroyed the building, so am planning on a casualty loss. What was left of the building was not demolished last year, but can I include the demolition costs as part of the casualty loss? The casualty happened last year, so wouldn't all the expenses associated with that single casualty get reported together?

If FMV of the property was $150k building and $50k land before the fire, and then the anticipated demolition costs were $10k, then would I say the building is now $0 and the land is $40k ($50k minus the $10k demolition costs)?

Bill