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- What is the right way to enter a new roof on a rental (casualty) when insurance proceeds are more than cost?
What is the right way to enter a new roof on a rental (casualty) when insurance proceeds are more than cost?
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Amy S
Level 2
02-14-2024
05:31 PM
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Client has a rental: original cost $78,222 less depreciation $31,177 = adjusted basis of $42,045.
Client was reimbursed $25,724.51 from insurance for hail damage and the cost of the roof was only $16,850.
Is it correct to enter the information on the depreciation schedule in the Casualty or Theft input?
Insurance or other reimbursement is self-explanatory. What do I enter in FMV before casualty or theft and FMV after casualty or theft to get the right number?
Don't I reduce the cost basis by the amount of the insurance reimbursement and then add the actual cost? Should I adjust the cost basis by the amount of the insurance reimbursement in the casualty input area and then add the cost of the new roof as a separate line item?
