Thanks for your input. I, also, have never filed a business casualty loss.

Yes, F 4684 allows you to enter the adjusted basis. However, nowhere does it allow you to enter depreciation separately so that that portion of the gain is taxed at the ordinary rate.

From the PS instructions on reporting the disposal of a business asset involved in a casualty where there is a gain, it appears that you enter the information on the enterable 4797 and not F 4684. If there is a loss, then you enter the disposal on F 4684.

Since this is my first business asset casualty disposal, I was hoping someone who had done one would be able to confirm my understanding or offer a better way to report the disposal.

Thank you.