Casualty Loss Schedule C Equipment

[ritastone001]

First, I am dazed & confused, so forgive me for asking.

Schedule C business has 1 piece of equipment lost in a fire.Adjusted basis 15360     FMV before fire  40000      FMV after fire  7500 

Decrease in value 32500       Amt of Loss  15360

Insurance reimbursement 31500   Gain is 16140.

Yes it was replaced before the end of the year. 

Question is in Pro Series is the order of entry begin with 4684 or on the Depreciation entry page?

I have gone in circles on this 

Has been suggested I enter as disposition on Schedule C depreciation entry page and set new equipment up for depreciation. Would result be the same on the return?

After 30 yrs this one is causing me problems. Really any help with this will be greatly appreciated. 

[Skylane]

Look at Pub 544 for involuntary conversions. Did they replace the equipment?

[sjrcpa]

"Yes it was replaced before the end of the year. "

[chenschuh]

I have a similar question. If the asset was used in business, and there was insurance payment, the payment was used to purchase the same asset, can I just continue to depreciate the same asset as before and no gain and loss needed to be recognized.

[sjrcpa]

Sort of. The insurance payment reduces the cost basis of the replacement asset. Refer to the Pub mentioned above.

[ritastone001]

On my original post I asked where to begin with entries for this case. Whether to begin with 4684 or within the depreciation screen for the piece of equipment.

Yes I did ask a question about just doing a 4797, but like I said I was really tired Saturday.

I have figured out the sequence to get this return worked out.

Thank you all for your suggestions.