Discussion:Rental Property Casualty Gain
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| {{ForumNewPost|UserID=NSLindacpa2|Date=19 March 2009|Text=I have a client who had a rental property burn down - complete loss. Basis was only $4,432 but insurance proceeds were $61,000. He rebuilt within the year and has rented for the last 3 months of 2008.(I am planning to take the $4,000 Loss of Usage proceeds and add it to Schedule E's rental income.) Does he have to recognize the gain on 4684 and enter the new construction at his cost? (It cost $74,360 to replace.) I have researched but still do not have a clear idea. "Loss (or Gain) = Adjusted Cost Basis less insurance proceeds." OK My Question in there no way to avoid including the gain this year ($57,000+) and depreciating the new house? | {{ForumNewPost|UserID=NSLindacpa2|Date=19 March 2009|Text=I have a client who had a rental property burn down - complete loss. Basis was only $4,432 but insurance proceeds were $61,000. He rebuilt within the year and has rented for the last 3 months of 2008.(I am planning to take the $4,000 Loss of Usage proceeds and add it to Schedule E's rental income.) Does he have to recognize the gain on 4684 and enter the new construction at his cost? (It cost $74,360 to replace.) I have researched but still do not have a clear idea. "Loss (or Gain) = Adjusted Cost Basis less insurance proceeds." OK My Question in there no way to avoid including the gain this year ($57,000+) and depreciating the new house? | ||
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| + | {{ForumReplyPost|UserID=Bjeter|Date=20 March 2009|Text=You can possibly defer some of the gain under §1033. It's been a while since I've done one of those, so I don't remember all of the details. Try looking there if you haven't already.}} | ||
Revision as of 00:33, 20 March 2009
Discussion Forum Index --> Advanced Tax Questions --> Rental Property Casualty Gain
Discussion Forum Index --> Tax Questions --> Rental Property Casualty Gain
NSLindacpa2 (talk|edits) said: | 19 March 2009 |
| I have a client who had a rental property burn down - complete loss. Basis was only $4,432 but insurance proceeds were $61,000. He rebuilt within the year and has rented for the last 3 months of 2008.(I am planning to take the $4,000 Loss of Usage proceeds and add it to Schedule E's rental income.) Does he have to recognize the gain on 4684 and enter the new construction at his cost? (It cost $74,360 to replace.) I have researched but still do not have a clear idea. "Loss (or Gain) = Adjusted Cost Basis less insurance proceeds." OK My Question in there no way to avoid including the gain this year ($57,000+) and depreciating the new house? | |
| 20 March 2009 | |
| You can possibly defer some of the gain under §1033. It's been a while since I've done one of those, so I don't remember all of the details. Try looking there if you haven't already. | |
