Most people don’t realize that you can write off any unrecoverable Diminished Value you may have suffered.┬áIf you itemize your deductions, Line # 19 on Form 1040 – Schedule A could be used to deduct your un-recovered Diminished Value. Depending on your tax rate, you could possibly reduce your tax obligation by hundreds and sometimes thousands of dollars. Although most of my clients say the insurance company normally pays at least half of their cost of the Diminished Value Appraisal, you are also able to write off any un-recovered cost of the appraisal using line #22 on Schedule A. Here’s an example,

$4000.00 in unrecoverable Diminished Value

Tax Rate of 20%

Reduces your tax obligation $800.00

Of course, I’m not a tax professional, so I can’t give tax advice, this is only for informational purposes only, you should review this with a tax attorney to make sure you qualify.

you could possibly reduce your tax obligation by hundreds and sometimes thousands of dollars