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Casualty los

Taxmaster
Level 2

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? 

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3 Replies 3
qbteachmt
Level 15

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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Taxmaster
Level 2

This doesn't address the question:   Where do I enter the depreciation taken on the building?  I find it hard to believe one doesn't have to take that into account when figuring any gain.  

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sjrcpa
Level 15

If the building is already entered in Depreciation, use the disposition section to enter the casualty. The software will pick up the depreciation.


ex-AllStar