How do I link Schedule E Casualty Gain to Form 4684

Forum|Forum|3 years ago
March 12, 2023
2 replies
26 views

Client had a rental completely destroyed by fire. Insurance proceeds were more than remaining basis resulting in Casualty Gain. I enter disposition on Sch E rental asset and also pertinent info on 4684 resulting in double reporting of gain.

A) How do I link the two transactions to only report a single gain? and

B) how do I get Lin 32a of 4797 Pt III to populate the casualty gain?

ProSeries Professional

This topic has been closed for replies.

T

taxes96786

Level 8

If your property is business or income-producing property, such as rental property, and is completely destroyed, then the amount of your loss is your adjusted basis minus any salvage value or insurance or other reimbursement you receive or expect to receive.

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raycpa99Author

Level 2

Thank you taking the time to reply. As stated in the original post there is a Gain on the casualty casualty, not a loss. An the gain has been properly calculated. My questions pertains strictly to using Proseries to report the gain. Specifically, how do I link the asset that was lost on Schedule E to Form 4684. Absent that link the gain is reported twice if I show the disposition on Schedule E and the casualty event on Form 4684.

I would think there is a simple linking process like other forms in Proseries but I cannot find it.

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Terry53029

Intuit Community Champion

You should check out the " involuntary conversion law" which in part allows a taxpayer to defer a realized gain only to the extent that they actually reinvest the proceeds in qualified replacement or like-kind property within two years after the close of the first tax year in which they realize any part of the casualty gain, or three years for real property held for productive use in a trade or business

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