Greta
Level 9
03-01-2021
09:45 AM
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I assume that's what the casualty worksheet 4684 did. I put in the cost basis (after accumulated depreciation), insurance reimbursement, fair market value before and after the fire event, and Form 4797 shows a gain of $78,500 that he is paying taxes on. I thought this would be his new add-on to cost basis. I confess I have not studied this in decades, and have not had other clients in the past like this.