USA Water Damage IRS Deduction

[jlshan]

We had a water pipe break underneath the concrete slab of our home. It was sudden and unexpected (Our insurance company so agreed). The damages were all repaired to our satisfaction and paid in full by our insurance company- with only one out of pocket expense.

We had to have the new water line installed overhead through our attic. The insurance company made us pay for this out of pocket (about $1,400.00) - they would not cover it.

So, can I claim this $1,400.00 as a deduction on my federal income tax return?

 

[kirby]

Nope. But you can add it to the tax basis of the house as it is something added to the house. So save the receipt and put it with your tax records.