[69LM1]

Here's what we are having issues with here. Per the IRS, they plan on auditing 1 in 10 people in Katrina effected areas. Just met with the CPA re: housing. It seems as if the IRS wants you to claim your loss of your house at PURCHASE price, which, to someone who purchased a house 10 yrs ago, means that you cannot take the increase in property value (no appreciation loss). HOWEVER, on contents, they are depreciated based on purchase date, condition etc. They get you both ways!