Demolished Property

Demolished Property

Demolished Property

My rental property was demolished midway in 2009 by the city of Birmingham, AL.


I still own the land. What is the tax treatment?

I was not paid anything by the city for the value of the home.

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Jan 20, 2024
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by: BB

In the situation where your rental property was demolished without compensation, you may be eligible for a casualty loss deduction on your federal income tax return. Here are some key points to consider:

Casualty Loss Deduction: You can potentially claim a casualty loss deduction for the destroyed property. This loss is typically deductible in the year the casualty occurred.

Determination of Loss: The deductible loss is generally the lesser of the adjusted basis of the property or the decrease in the fair market value of the property as a result of the casualty.

Documentation: It's crucial to document the details of the event, including the date of demolition and any relevant communication with the city.

Land Value: Since you still own the land, the value of the land itself is not considered a casualty loss. The loss would typically be related to the value of the improvements (the demolished structure).

Professional Advice: Given the complexity of tax matters, it's advisable to consult with a tax professional or accountant to ensure accurate reporting and to understand any specific state or local tax implications.

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Property Tax Canada

by Bruce
(Novi, Mi, 48374)

Can I claim property taxes for a home in canada?

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Property Tax Deduction

Can you carry over this deduction if you didn't use it the year before?

Hello,

Thank you for your question.

Unfortunately you are not able to carry over your property tax deduction if you didn't use it before. You can only claim property taxes paid in the year they were paid.

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Rental Property

by Josh
(San Diego, CA)

Last year a friend and I purchased a residential rental income property as tenants in common with each owning 50%. For federal income tax purposes, do we need to file a partnership tax return for the property or can we just each enter 50% of the revenue and expenses on our form 1040 schedule E?

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