The value of Terrah's personal residence has declined significantly because of a recent forest fire in the area where she lives. The fire was a Federally declared disaster. Terrah's house suffered no actual damage during the fire, but because much of the surrounding area was destroyed, the value of all of the homes in the area declined substantially. Can Terrah take a casualty loss for the decline in value of her residence caused by the fire?

Question

Social Studies

Wifey

Today, 02:37

The value of Terrah's personal residence has declined significantly because of a recent forest fire in the area where she lives. The fire was a Federally declared disaster. Terrah's house suffered no actual damage during the fire, but because much of the surrounding area was destroyed, the value of all of the homes in the area declined substantially. Can Terrah take a casualty loss for the decline in value of her residence caused by the fire?

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Answers (1)

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Tiffany Frey · Answer 1

No

Explanation:

There was a forest fire near Terrah's residence place. The forest fire was declared as a disaster by the federal. But the value of Terrah's personal residence has declined significantly because of this forest fire.

But her house suffered no actual damage. So Terrah can not take a casualty loss for the decline in value of her residence caused by the fire.

Thus the answer is 'no she can not take a casualty loss'.