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Level 3
April 10, 2022
Question

Rental house: major fire last year.

  • April 10, 2022
  • 1 reply
  • 12 views

Empty for six months, will be torn down this year, received $80,000 insurance payment as a total loss. Depreciated value is about $40,000. How do I account for the insurance payment?

 

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1 reply

dascpa
Level 11
April 10, 2022

Research Section 1033 Involuntary Conversions and the rules related to replacement property.

gslaytonAuthor
Level 3
April 13, 2022

Thank you.