Solved
Can a taxpayer in a federally declared disaster area claim a loss on form 4684 after they elected to take 80% of the insurance claim?
The taxpayer had and insurance policy that covered up to $431,900 for personal belongings. They opted not to itemize and take the 80%, which is $345,520. Now they want to claim a loss for the difference ($86,380) in their 2018 return. Per client, their cost basis is estimated to be $450,000.
