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Multi Member LLC - Had Several Fixed Assets Stolen

Forum|Forum|3 years ago
March 14, 2023
3 replies
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I have a multi member LLC client. They are a camera equipment rental house. Their facility was robbed and several items were stolen - basis value of $108,000. How do I record this in Pro Series. Do I just go to asset entry worksheet that I used for each item in the previous years and treat it as a disposition and use $0 for the sale price? The insurance company paid them replacement cost of $213,000. Consequently, they are in a better position by $105,000. Is that difference between the loss and the insurance money taxable? Is there anything else that I need to do to record the robbery loss? Thank you in advance to anyone who can help.

ProSeries Professional

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Best answer by Skylane

Sounds like there’s a 4868 in your future… section B

https://www.irs.gov/pub/irs-pdf/i4684.pdf

https://www.irs.gov/pub/irs-pdf/i4684.pdf

assuming the cameras were replaced to the extent of the insurance company payout income will be shown.. PS handles it well on a 1040. I’ve never tried on a 1065.

Accountant-Man

Level 13

What kind of business tax return?

Yes, $105,000 is income.

** I'm still a champion... of the world! Even without The Lounge.

C

catherine3Author

Level 4

Form 1065

sjrcpa

Level 15

Did they buy replacement equipment?

Or did they just take the money?

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

Skylane

Answer

Intuit Community Champion

Sounds like there’s a 4868 in your future… section B

https://www.irs.gov/pub/irs-pdf/i4684.pdf

https://www.irs.gov/pub/irs-pdf/i4684.pdf

assuming the cameras were replaced to the extent of the insurance company payout income will be shown.. PS handles it well on a 1040. I’ve never tried on a 1065.

If at first you don’t succeed…..find a workaround

C

catherine3Author

Level 4

Thank you.

Skylane

Intuit Community Champion

@taxes96786 Yes, it is likely that the insurance coverage was on a replacement cost basis. In order to get the full value of the claim from the insurance company, the insured must replace the property and provide proof.

@catherine3 you’re correct that the disposition of old assets will be 0. New depreciation for the replacement equipment. I assume sec 179 may be used to extent allowable. @Accountant-Man knows business returns better than me.

If at first you don’t succeed…..find a workaround

sjrcpa

Level 15

There is a rule for involuntary conversions. See IRC Section 1033.

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

Skylane

Intuit Community Champion

@sjrcpa thanks. Forgot.

If at first you don’t succeed…..find a workaround

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