Business lost due to fire

[leanne12]

I file a 1065 but I lost everything due to a fire in October.  By everything I mean, building, all equipment, furniture, inventory and completed jobs.  The insurance advanced me 100,000 so I could go ahead and pay off my suppliers.  Do I go that on my 2024 taxes and how.  Also, when they settle everything in 2025, is the amount for inventory taxable?  

I am not going back into business.  The building was being rented and counted on  my personal taxes.

[AmyC]

Use Topic no. 515, Casualty, disaster, and theft losses - IRS as a starting point. You need to claim the loss and adjust for the insurance paid. A business can claim a loss due to fire in any location.