fte basis of property must be reduced by the amount of any casualty loss.

Question

Quizplus · Accepted Answer

The basis of property is reduced by the amount of any casualty loss. This is because the basis of property is generally the original cost plus any improvements and minus any depreciation, but when a casualty loss occurs and the property is partially or totally destroyed, the basis needs to be adjusted to reflect the decrease in value caused by the loss.

Fte Basis of Property Must Be Reduced by the Amount