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How to Calculate Fair Market Value of Property After a Casualty Loss

Taking the time to do this calculation could save you big on your next tax return.


[Updated: Feb 04, 2021 ] Oct 22, 2019 by Millionacres Staff
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Calculation SCENARIO 1 -- TREE FALLS, DESTROYS CAR SCENARIO 2 -- WINDSHIELD BROKEN, NO OTHER DAMAGE
Fair market value before casualty $10,000 $10,000
Fair market value after casualty $0 $9,500
Decrease in fair market value $10,000 $500
Subtract insurance reimbursement -$10,000 -$250
Potential Tax Deduction $0 $250