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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121565  
Subject: Re: Is this taxible income, Federal and State. Date: 11/25/2013 5:39 PM
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So the cost of a new oil tank (if I got one, which I did not), the cost of removing the old one, are both the result of progressive deterioration. But the damage to the water table, etc., seem to be like the rust damage to carpets and drapes in the previous example. At least I can interpret it so.

Here's what I've had banging around in the back of my head, so I decided to run it up the flagpole....

How about the remediation payment by the state being a reduction in basis?

As has been noted, this can't fit into any definition of casualty loss I can think of. It seems to me that the remediation definitely increases the value of the property. Presumably even in New Jersey there would be some disclosure requirements about the potential purchase of a LUST site, so the ability to say "problem solved" to a potential purchaser is worth something.

If it's not obvious, this is a SWAG. Pros?

Phil
Rule Your Retirement Home Fool
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