To figure Fair Market Value of personal belongings at time of loss, you have several options.
You can use the Personal Belongings Replacement Cost Safe Harbor--reduce by 10% for each year owned:
Remember--you need to add "Safe Harbor" to the desription of items so the IRS won't challenge it. |
Or.. Use a depreciation Calcualtor to find the depreciation value for each specific type of item. It will show percentage rates by type of item that you can use with original cost and replacemet value.
If you have replacement value--it can calculate the FMV for each items as well. claimspages.com/tools/depreciation/ Thre is even a PDF with a list of percentages -- click image to open |
Or.. If loss of personal belongings is under $5,000--You can also use what is called De minimis Method--as long as the FMV of losses is under $5,000; just come up with a good faith estimate. Make sure to record How you came up with the value and keep for your records--describe affected personal belongings and how you came up with the value.
You can use worksheets to tally/record your losses
For Simple Casualty Loss Worksheet--one page click here you will need to make a copy before using it--might have to have Google Account
Click For Detailed multi-page Casualty Loss Spreadsheet you will need to make a copy before using it
Click For Detailed multi-page Casualty Loss Spreadsheet you will need to make a copy before using it