I have a client whose rental property was ruined by a flood last year. They have stripped it down to the studs and are reconstructing it. They have already spent just about as much as their ACB in the property and are not yet finished.
I know the calculation is FMV before loss -FMV after loss -but how is FMV after loss determined? They didn't have it appraised. Am I safe to assume that a house that is torn down to the studs is basically a 100% write-off? They had to install new wiring, carpets, drywall, woodwork etc.
Carolyn
I know the calculation is FMV before loss -FMV after loss -but how is FMV after loss determined? They didn't have it appraised. Am I safe to assume that a house that is torn down to the studs is basically a 100% write-off? They had to install new wiring, carpets, drywall, woodwork etc.
Carolyn
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