Discussion:Form 4684 Casualty loss
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| Revision as of 19:57, 11 January 2007 Kathyt (Talk | contribs) (Don't file 4684;) ← Previous diff |
Current revision Www.cpa1.biz (Talk | contribs) (Almanacers, A c) |
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| {{ForumReplyPost|UserID=Kathyt|Date=11 January 2007|Text=Don't file 4684; just attach the statement}} | {{ForumReplyPost|UserID=Kathyt|Date=11 January 2007|Text=Don't file 4684; just attach the statement}} | ||
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| + | {{ForumReplyPost|UserID=Www.cpa1.biz|Date=10 March 2009|Text=Almanacers, | ||
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| + | A client received insurance premiums for a flood last year on his dentistry office. He did get insurance premiums to take care of the new denistry chairs that he bought. I am having troubles on how I present this on the tax return and books. | ||
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| + | 1) I am going to file the form 4684 showing the proceeds and basis (basis 0 since section 179); however, where do I report the new purchase of the chairs. The proceeds are around $130k. The chairs and other equipment related to the casualty cost around $130k. Do I show this cost of 130k on line 26 and then show the insurance proceeds on line 27 to make it a wash? | ||
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| + | 2) Per books, do I debit cash from insurance proceeds and credit some type of account called insurance income. | ||
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| + | 3) Per books, When the asset was bought for cash, do I debit some account called insurance expense? | ||
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| + | This will net the two out and the basis will remain the same as the previous assets. | ||
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| + | Please inform. | ||
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| + | Thanks, | ||
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| + | Bj}} | ||
Current revision
Discussion Forum Index --> Tax Questions --> Form 4684 Casualty loss
| 11 January 2007 | |
| Have a client that has a gain from a casualty loss. He has elected to postpone the gain since he has replaced the building and paid more than the insurance proceeds.
My question: Do I need to file form 4684 and if so, my computer takes the gain automatically to form 4797. Do I need to override and put zero on from 4797 or just not file the form 4684? I will be attaching a statement describing the loss and the calculations for the gain and postponement. | |
Www.cpa1.biz (talk|edits) said: | 10 March 2009 |
| Almanacers,
A client received insurance premiums for a flood last year on his dentistry office. He did get insurance premiums to take care of the new denistry chairs that he bought. I am having troubles on how I present this on the tax return and books. 1) I am going to file the form 4684 showing the proceeds and basis (basis 0 since section 179); however, where do I report the new purchase of the chairs. The proceeds are around $130k. The chairs and other equipment related to the casualty cost around $130k. Do I show this cost of 130k on line 26 and then show the insurance proceeds on line 27 to make it a wash? 2) Per books, do I debit cash from insurance proceeds and credit some type of account called insurance income. 3) Per books, When the asset was bought for cash, do I debit some account called insurance expense? This will net the two out and the basis will remain the same as the previous assets. Please inform. Thanks, Bj | |
