How Do I Depreciate Home Improvements If I Had A Fire?

[melilley]

I opened in 2013.

In July of 2011 we had a house fire. Our house was torn down to the studs and was rebuilt in from July 2011 to Feb. 2012 so everything is brand new (well 2 years old now). I am going through and am doing inventory for taxes so I can enter into MMK.
Can I depreciate all of the home improvements that the restoration company did? We had all those things before the fire. (I do know you have to do the fair market value when I opened). I have the Record Keeping Guide and am going off of the list of home improvements in it.

We don't have receipts for almost everything as it was done through a restoration co. and our insurance covered most of the costs.

[TomCopeland]

Casualty loss

I opened in 2013.

In July of 2011 we had a house fire. Our house was torn down to the studs and was rebuilt in from July 2011 to Feb. 2012 so everything is brand new (well 2 years old now). I am going through and am doing inventory for taxes so I can enter into MMK.
Can I depreciate all of the home improvements that the restoration company did? We had all those things before the fire. (I do know you have to do the fair market value when I opened). I have the Record Keeping Guide and am going off of the list of home improvements in it.

We don't have receipts for almost everything as it was done through a restoration co. and our insurance covered most of the costs.

Any expense covered by your insurance is not deductible. Any out of pocket expenses you paid that were not covered by insurance can be deducted as a business expense. If the expense was for a home improvement, depreciate the amount you paid out of pocket over 39 years. If the expense was for furniture, appliances, equipment depreciate them over 7 years. Continue depreciating your home as normal. If you were depreciating items that were destroyed by the fire (furniture, appliances, etc.) you can claim the remaining amount of depreciation on your current tax return.

[Unregistered]

So, if we had hail damage and decided to paint the whole house (insurance covered 2 sides) how would I calculate and claim it? So let's say the whole house was 5,000 our deductible was $1500 and we got an insurance check for $1000. Would we claim our T/S of $4000 (whole house minus the insurance check amount)? And is it a repair or replacement? Same for our roof? Thanks Tom

[TomCopeland]

Casualty loss

So, if we had hail damage and decided to paint the whole house (insurance covered 2 sides) how would I calculate and claim it? So let's say the whole house was 5,000 our deductible was $1500 and we got an insurance check for $1000. Would we claim our T/S of $4000 (whole house minus the insurance check amount)? And is it a repair or replacement? Same for our roof? Thanks Tom

You can deduct the time-space % of the $4,000 as a repair. If you repaired the roof, same answer. If you replaced the roof, depreciate it over 39 years.