We had a rental property in Hawaii with a little house that was completely covered by lava in May 2018. There was no insurance (premiums = 20% of house value). The state has appraised the property down to $0 and is no longer charging property tax. Where can we use this loss as a deduction? What line? And can we use both the house and the land as a total loss - technically we still own the "land", however it is more than likely going to be worthless and uninhabitable for many decades.
