Thank you for your response.  I am somewhat familiar with the 1033 exchange, but I am not sure if it can be used since the client has no intention of replacing the wind-damaged barn that has now been fully torn down.  His main goal was to fix up the other barn for an entirely different use.  Since these two barns had/have completely different uses, do they qualify as an appropriate "exchange" set?  Can the repairs to the other barn qualify to fulfill the requirements of a 1033 exchange?  I believe all of the work to restore the other barn to better condition has been completed within 2023, and the related expenses fully paid, within the same year the insurance claim was filed and paid (2023).  If this would actually work for the 1033 exchange, I could probably complete the whole process of this within this same year's tax return.  I will review the instructions for the 1033 exchange, but would also appreciate your thoughts regarding these further questions.  My client would be very happy to not have to pay tax on this insurance payout.  The wind-damaged barn was fully depreciated and had no basis.