In the community of a taxpayer there was a flood that affected his house, an unexpected event. At the time of the incident His property had the following values: The President of the United States declared a Disaster Zone. Cost or basis of ownership 110,000 .Insurance reimbursement 85,200 Fair market value before the incident Fair market value after the incident ..$120,000 75,000 The taxpayer's adjusted gross income is $50,100 to. Let us determine the allowable deduction for your loss using Form 4684