Sale of Home in LA Fires
Client's home was valued at $1.1million when it burned down.
Bought home 17 years ago for $450K.
She sold the lot for $500k and received $600K from the insurance company.
Property was in a designated Disaster Area.
She purchased a new home 6 months later (within the 4 year limitation) for $1m.
Do I need two disposition entries for the insurance payout and the sale of the lot?
What is the basis of her new home?
