I have a multi member LLC client. They are a camera equipment rental house. Their facility was robbed and several items were stolen - basis value of $108,000. How do I record this in Pro Series. Do I just go to asset entry worksheet that I used for each item in the previous years and treat it as a disposition and use $0 for the sale price? The insurance company paid them replacement cost of $213,000. Consequently, they are in a better position by $105,000. Is that difference between the loss and the insurance money taxable? Is there anything else that I need to do to record the robbery loss? Thank you in advance to anyone who can help.
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Sounds like there’s a 4868 in your future… section B
https://www.irs.gov/pub/irs-pdf/i4684.pdf
https://www.irs.gov/pub/irs-pdf/i4684.pdf
assuming the cameras were replaced to the extent of the insurance company payout income will be shown.. PS handles it well on a 1040. I’ve never tried on a 1065.
What kind of business tax return?
Yes, $105,000 is income.
Form 1065
Is it possible that the excess covers the cost of replacing the items. Perhaps the current cost of the stolen items is higher than the FMV of the stolen items.
Sounds like there’s a 4868 in your future… section B
https://www.irs.gov/pub/irs-pdf/i4684.pdf
https://www.irs.gov/pub/irs-pdf/i4684.pdf
assuming the cameras were replaced to the extent of the insurance company payout income will be shown.. PS handles it well on a 1040. I’ve never tried on a 1065.
@taxes96786 Yes, it is likely that the insurance coverage was on a replacement cost basis. In order to get the full value of the claim from the insurance company, the insured must replace the property and provide proof.
@catherine3 you’re correct that the disposition of old assets will be 0. New depreciation for the replacement equipment. I assume sec 179 may be used to extent allowable. @Accountant-Man knows business returns better than me.
Thank you.
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