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Irs Fair Market Value

Question: IRS Tax Question-Ike Damage?

I received roof damage and fence damage from hurricane ike. My roof repair cost me $300.00 and fence $2800.00. Turbo Tax is asking me the cost of my roof before the damage, the fair market value before and after the damage. Since the house was built in 97, do I say the cost was 10,000 which is a cost of the roof when the house was built, the fair market value is 10,000 because if the whole roof had to be replaced, that is what it would have costed, and the value after the damage is $9,700 as I paid $300.00 in repairs.

Answer: As a former roofer, $300 in damage must not have been that bad, or someone cut you a good break because of the tragedy. I would probably use the $10K for new but estimate the value after damage around $8-9K. just an opinion though. I hope all is better down there now. I came down to Houston as a line clearance tree trimmer to help out with the tree issues. Hope all is well, we felt well appreciated and were honored to help out our Texas brothers.

How To Set Your Rates — Part 2 — Fair Market Value