You can claim casualty loss on your tax return for loss that was not reimbursed by the insurance company.
The casualty loss deduction is measured in terms of the economic decline in the value of the property, as a result of the casualty event, with your adjusted cost basis as a maximum deduction ceiling
Which means the difference between the fair market value of the property immediately before the casualty less the fair market value of the property immediately after the casualty reduced for any insurance or other reimbursements will be considered as a loss subject to no more than your adjusted cost basis in that property. You must then reduce the loss by $100 and also reduce the total of your casualty losses by 10 percent of your adjusted gross income for the tax year in which the loss occurred. Only the excess over these $100 and 10 percent limits is deductible as an itemized deduction on Sch A, Form 1040.
If you have repaired the property since then, Repairs cost can be considered as acceptable to determine decrease in value of the property to claim the casualty loss if it fits in the criteria discussed below-
Section 1.165-7(a)(2)(ii) provides that the cost of repairs to the property damaged is acceptable as evidence of the decrease in value of the property if the taxpayer shows that: (1) the repairs are necessary to restore the property to its condition immediately before the casualty; (2) the amount spent for such repairs is not excessive; (3) the repairs do not care for more than the damage suffered; and (4) the value of the property after the repairs does not, as a result of the repairs, exceed the value of the property immediately before the casualty. In order to use the cost-of-repairs method to determine the decrease in fair market value, the taxpayer must actually make the repairs rather than rely on estimates of repairs that will be performed in the future or not at all.
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Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.