Question

Hurricane Helene losses - how to determine cost basis?

Forum|Forum|1 year ago
March 24, 2025
1 reply
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Hello,

Trying to figure out how to find the cost basis for my personal property and dwelling losses (not covered by my flood insurance policy) for 2024 Hurricane Helene. I have a Proof of Loss form from FEMA but not sure which line is my cost basis. Can anyone help me figure out how to determine this number? Thank you!

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Vanessa A

Your cost basis is the amount you have into it. FEMA would not provide you with this number.

For instance, if you paid $200,000 for your home, that would be your cost basis of your home. If you had trees that you planted over the years or a car that was flooded out, your cost basis would be the amount you paid for the trees or the car.

Figuring a Loss

To determine your deduction for a casualty or theft loss, you must first figure your loss.

Amount of loss.

Figure the amount of your loss using the following steps.

Determine your adjusted basis in the property before the casualty or theft.
Determine the decrease in fair market value (FMV) of the property as a result of the casualty or theft.
From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive.
For personal-use property, apply the deduction limits, discussed later, to determine the amount of your deductible loss.

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S

spblonghornAuthor

thank you, very helpful! So how far in advance and how far after the hurricane do I need to consider for the decrease in fair market value? Would it be the fair market value after repairs are completed?

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Vanessa A

You want to get the Market Value directly before and directly after. You can do this with the help of a realtor.

The decrease in value would be the amount before the repairs minus the value before the damage. This would be your loss.

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