Question

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?__ because the decline in value of her residence ___ meet the "sudden, unexpected, and unusual, progressive deterioration" requirement for a casualty loss

Answer 1

Answer:

No because the decline in value of her residence does not meet the "sudden, unexpected, and unusual, progressive deterioration" requirement for a casualty loss.

Explanation:

Terrah's house suffered no actual damage because of a recent forest fire in the area where she lives. Terrah cannot take a casualty loss for the decline in value of her residence caused by the fire as the decline in value of her residence dose not meet the "sudden, unexpected, and unusual, progressive deterioration" requirement for a casualty loss.

Final answer:

No because the decline in value of her residence does not meet the "sudden, unexpected, and unusual, progressive deterioration" requirement for a casualty loss.