Hurricane Ike casualty loss

Nazar Abazajian · #1 (**permalink**) 02-26-2009, 09:58 AM

My house was completely destroyed by Hurricane Ike, nothing left except the slab. On form 4684 line 2 do I put the price I paid for the property plus improvements before casualty or the replacement cost which I have to spend to bring my house to pre-casualty conditions?

TaxGuru · #2 (**permalink**) 03-01-2009, 10:55 PM

On Form 4684 Line 2, the IRS requires that the taxpayer enter the original cost of the property plus any improvements or upgrades spent on the property (before the casualty) not the replacement costs!