Form 4684 due to Hurricane Irmar
I currently live an area, declared as federal disaster area due to Hurricane Irmar, in FL. My primary residence single home was damaged (Roof and Patio Enclosure) by that. So I am trying to fill out the Form 4684.
Here is my understanding of that form. It looks like that this is based on Fair Market Value.
So suppose that my FMV of home before the hurricane, says, 200K, which is based on home appraisal.
Then say, my FMV of home after the hurricane, say, 220K, which is based on home appraisal. In this case, I don?t think I can get any deduction, since the FMV has been increased even if it was damaged by the hurricane. Is my understanding correct? I am not sure why my FMV has been increased, even though it was damaged by the hurricane. I thought that I could get some by this form though.
So technically, if FMV is not reduced, the Form 4684 doesn?t help at all, even though it was damaged by the hurricane. Is my understanding correct?