SECTION 9. DRAFTING

INFORMATION

The principal author of this revenue procedure is Joanna L. Trebat of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this revenue procedure, contact Ms. Trebat at 202-317-7003 (not a toll-free number).

26 CFR 601.105. Examination of returns and claims for refund, credit or abatement; determination of correct tax liability. (Also: Part I, §§ 165; 1.165–1(c)(4), 1.165–1(d)(2)(iii), 1.165–7(a)(2), 1.165–7(b).)

Rev. Proc. 2018–09

CONTENTS SECTION 1. PURPOSE.................................................................................................................................................................291 SECTION 2. BACKGROUND ......................................................................................................................................................291 SECTION 3. SCOPE ......................................................................................................................................................................292

.01 In general ..............................................................................................................................................................................292 .02 Definition of personal-use residential real property and personal residence ....................................................................292 .03 Use of Cost Indexes Safe Harbor Method ...........................................................................................................................293

(1) Total loss ...........................................................................................................................................................................293 (2) Near total loss ...................................................................................................................................................................293 (3) Interior flooding over 1 foot .............................................................................................................................................293 (4) Structural damage from wind, rain, or debris .................................................................................................................293 (5) Roof covering damage from wind, rain, or debris ..........................................................................................................293 (6) Damage to a detached structure ......................................................................................................................................293

January 8, 2018 290 Bulletin No. 2018–2

(7) Damage to decking ...........................................................................................................................................................293 .04 Taking into account no-cost repairs ....................................................................................................................................293 .05 Limited use of safe harbor method ......................................................................................................................................293 SECTION 4. COST INDEXES SAFE HARBOR METHOD ......................................................................................................293

.01 In general ..............................................................................................................................................................................293 .02 Special rules ..........................................................................................................................................................................294 .03 Tables ....................................................................................................................................................................................294

Table 1 - Total Loss...............................................................................................................................................................294 Table 2 - Near Total Loss......................................................................................................................................................294 Table 3 - Interior Flooding Over 1 Foot...............................................................................................................................295 Table 4 - Structural Damage From Wind, Rain, or Debris..................................................................................................295 Table 5 - Roof Covering Damage From Wind, Rain, or Debris .........................................................................................296 Table 6 - Damage to a Detached Structure...........................................................................................................................296 Table 7 - Damage to Decking ...............................................................................................................................................296 SECTION 5. EXAMPLES .............................................................................................................................................................296 SECTION 6. REDUCTION FOR NO-COST REPAIRS..............................................................................................................298 SECTION 7. EFFECTIVE DATE .................................................................................................................................................298 SECTION 8. PAPERWORK REDUCTION ACT ........................................................................................................................298 SECTION 9. DRAFTING INFORMATION.................................................................................................................................298