The amount of loss for partial destruction of business property is the lesser of the adjusted basis or the decline in fair market value.

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According to IRS guidelines, the amount of loss for partial destruction of business property is calculated based on the lesser of the adjusted basis or the decline in fair market value. This means that if the adjusted basis of the property is greater than the decline in fair market value, the loss will be based on the decline in fair market value. If the decline in fair market value is greater than the adjusted basis, then the loss will be based on the adjusted basis.

The Amount of Loss for Partial Destruction of Business Property