The National Directory of Certified Public Accountants

Ask A CPA - Casualty Losses

Casualty Loss - Fair Market Value

FMV is the price for which you could sell your property to a willing buyer, when neither of you has to sell or buy and both of you know all the relevant facts. When filling out detailed schedules , you need to know the FMV of the property immediately before and immediately after the disaster, casualty, or theft. Generally, if a single casualty or theft involves more than one item of property, you must figure the loss on each item separately. Then combine the losses to determine the total loss from that casualty or theft.

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