Discussion:Fire/Casualty Loss Rental Property
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Discussion Forum Index --> Advanced Tax Questions --> Fire/Casualty Loss Rental Property
Discussion Forum Index --> Tax Questions --> Fire/Casualty Loss Rental Property
| 19 March 2008 | |
| Client owns two family home.
Client has been depreciating 50% of it bec it was rented out for the last few years. October 2007 client had a devastating fire which essentially destroyed 75% of the dwelling. Both rental and personal were affected. Both moved out. How do I deal with the depreciaition issue now in 2007 filing? Mark it as scrapped, out of service, etc? FYI- He has insurance, but the amount and when they will pay is still inconclusive. Guidance, please? | |
| 19 March 2008 | |
| Hi,
To follow the treatment of this situation: 1.To charge depreciation on property till the date of fire occurred. 2.Complete the "Form 4684" related to report the casualty and theft occurred during the tax year. 3.Later on,you may incurred some imrovement expenses that is to be capitalised and over it charge depreciation also or amortized it. Thanks. | |
