Farmer had a casualty loss when machine shed blew down in a windstorm. Building is completely depreciated. He received payment from insurance company but hasn't rebuilt yet. How do I report if he plans on rebuilding in 2021? Or, if I report the entire insurance payment as a gain in 2020 and then he later decides to rebuild, how do I report that?
Here is your New info:
Follow up to my previous question - when entering a casualty loss, program requires that I enter the basis of the building - but I can't find anywhere to enter the depreciation taken, which would reduce the basis to zero. Instructions specifically say not to take depreciation into account when entering basis....
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