My house was destroyed by a tornado in April, and we have since had it rebuilt with money from our homeowner's insurance. Are there any tax implications associated with that? Any type of special deductions that might apply?
Look up "casualty loss". Your loss is the smaller of the change in FMV or your cost basis (your cost price plus improvements) minus insurance reimbursements, and you can only deduct the amount above 10% plus $100 of your AGI. Was this a presidentially declared disaster area?
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