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Hurricane IRMA - Personal Home and Belongings

The Internal Revenue Service issued safe harbor methods that individuals may use in determining the amount of their casualty and theft losses for their homes and personal belongings, including losses from recent hurricanes. For Business Owners Click Here

Below you will find a brief description of each of the available methods.

 

  • De Minimis Safe Harbor Method

If losses are under $5,000 all you need is a good-faith estimate to take the deduction on your tax return.

 

  • Estimated Repair Cost Safe Harbor Method

If losses are under $20,000, you may use the lesser of two repair estimates prepared by two separate and independent contractors to take the deduction on your tax return.Note: you do not have to make the repairs just have proof that there was a loss.

 

  • Insurance Safe Harbor Method

You can use the reports prepared by your homeowners’ or flood insurance company to prove loss.The amount of loss for your tax return is the total loss minus any money received by the insurance company.Normally this is your deductible.

 

  • Disaster Loan Appraisal Safe Harbor Method

An individual may use an appraisal prepared for the purpose of obtaining a loan of Federal funds or a loan guarantee from the Federal Government.Normally, SBA Disaster Loan.

 

  • Contractor Safe Harbor Method

You may also use the contract price for the repairs specified in a contract prepared by an independent contractor.

 

  • Cost Indexes Safe Harbor Method

If you had damage to your personal home, you can use the below per square foot cost index below to figure out your total loss.

For a detail definition of category below please see: https://www.irs.gov/pub/irs-drop/rp-18-09.pdf

 

  • Roof covering damage from wind, rain, or debris

Less than 1,500 sq/ft – $8 per sq/ft

More than 1,500 / Less than 3,000 sq/ft – $8 per sq/ft

More than 3,000 sq/ft – $7 per sq/ft

 

  • Damage to decking

$29 per sq/ft

 

  • Damage to a detached structure

Less than 200 sq/ft – $71 per sq/ft

More than 200 / Less than 400 sq/ft – $56 per sq/ft

More than 400 sq/ft – $50 per sq/ft

 

  • Structural damage from wind, rain, or debris

15% - 25% of the home – $202 per sq/ft

26% - 50% of the home – $186 per sq/ft

51% - 100% of the home – $168 per sq/ft

 

  • Interior flooding over 1 foot

Less than 1,500 sq/ft – $146 per sq/ft

More than 1,500 / Less than 3,000 sq/ft – $125 per sq/ft

More than 3,000 sq/ft – $116 per sq/ft

 

  • Near total loss

Less than 1,500 sq/ft – $190 per sq/ft

More than 1,500 / Less than 3,000 sq/ft – $166 per sq/ft

More than 3,000 sq/ft – $154 per sq/ft

 

  • Total loss

Less than 1,500 sq/ft – $235 per sq/ft

More than 1,500 / Less than 3,000 sq/ft – $208 per sq/ft

More than 3,000 sq/ft – $193 per sq/ft

 

 

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