Can an affected taxpayer use the value of their property as stated their most recent property tax statement to establish the FMV of the property before the casualty?
No. The law allows the taxpayer to establish the FMV of the property before the casualty by either: (1) obtaining an appraisal from a competent appraiser (see Reg. 1.165-7(a)(2)(i)); or (2) by using the cost of repairs method (see Reg. 1.165-7(a)(2)(ii)). The IRS will review each return based on the particular facts and circumstances. (12/15/09) Q. Taxpayer’s beach front rental property was totally destroyed as a result of a hurricane that occurred in 2008. The taxpayer then decided not to rebuild. After the hurricane, the County Tax Assessor valued the property at $100. The taxpayer received insurance proceeds in 2009 that resulted in a gain. The taxpayer, who had been reporting income and expenses on Schedule E, has suspended losses. Is the taxpayer required to report the gain in 2008 or 2009? Is the taxpayer required to consider the property as disposed of and take the suspended losses? If so, are these losses reported on the 2008 or 2009 return? A: The gain that results from the ca
Related Questions
- Can an affected taxpayer use the value of their property as stated their most recent property tax statement to establish the FMV of the property before the casualty?
- How does a taxpayer establish the decrease in the fair market value of the property after a casualty?
- How have stable value funds been affected by recent market turmoil?
