Asset Removal and 4684

Forum|Forum|28 days ago
June 4, 2026
2 replies
19 views

I have a client that lost all their assets/entire business in 2025 due to a fire. We are to the point we need to remove each of the assets from their depreciation schedule showing them removed as the date of fire and at a zero value and then we will report them on Form 4684 using the FMV before fire and FMV after fire including any insurance proceeds. Is this the proper steps to report an incident such as this? Is there anything else we should watch for? Does this duplicate the loss or does PS know since we are completing the 4684 to only show one

ProSeries Basic

T

Terry53029

Intuit Community Champion

After you fill out 4684 to determine loss you then fill in the asset worksheet to show as a sale of 0 if a total loss, so ProSeries Will automatically fill out the 4797

BobKamman

Level 15

Is this a Schedule C filer? How much were the insurance proceeds? Are you sure you don't have a gain and need to follow the involuntary conversion rules?

S

SallyA6175Author

Level 2

This is a schedule C filer and I will account for the insurance proceeds on the few assets that they were paid out when I am completing the 4684. However, I dont see how they could possibly have a gain since more assets were lost than they were paid out on. If they do have a gain, then I would definitely need to follow the involuntary conversion rules.

S

SallyA6175Author

Level 2

If we do have a gain, and the client doesn't replace some of the property lost until 2026 or tax year 2027 how do we show the deferral of that tax gain?

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