Casualty los

Forum|Forum|5 years ago
March 10, 2021
1 reply
5 views

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?

Lacerte Tax

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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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T

TaxmasterAuthor

Level 3

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.

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.

The more I know the more I don’t know.

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