Read the rules on 1033 exchange.  You do not have to fix up old damaged property.  You can build on or replace within 2 years with another property. You have to attach a statement to both the year insurance proceeds is received and year replacement property is built to show that proceeds were used for casualty loss.  Form 4684 is used to report gain or loss.  You are reporting neither as long as replacement property is built within 2 years and entire insurance proceeds are used for replacement.