In the aftermath of a disaster, taxpayers may need to reconstruct their financial records to prove a loss and the amount of the loss. The IRS explained in a recent fact sheet that, to compute a loss, a taxpayer must determine the following figures: the decrease in fair market value of the property that resulted from the disaster and the adjusted basis of the property. “Taxpayers may deduct the smaller of these two amounts, minus insurance or other reimbursement,” the IRS stated.

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For more details read the article Reconstructing records after a disaster; IRS provides tips to help taxpayers.