I received insurance payout for total loss of rental due to fire and is accounted for on 4684. Nothing will be done during the tax year regarding disposal or sale. I received 'loss of income' insurance payout which I will include on Sked E as rental income. Regarding the payout for the building:
4684 has FMV questions. Does the FMV exclude the land value? I presume it does. Is it correct that fmv after loss is zero, even though I still possess the burnedout structure and land?
The building & improvements, except roof, are fully depreciated. The roof is the only item still being depreciated (5 yrs remaining). On 4684 I am using the total depreciable basis from the Depreciation Report as a single entry rather than breaking out each asset as a separate entry since the building is considered a total loss. Is this correct?
When working through "Casualties & Thefts" the annual depreciation of roof is carried over on the Depreciation Report. Shouldn't it revert to zero as a loss? If so, how do I do that?
The asset entry worksheet for every asset, excluding the roof, show a disposition date of the fire with blank data for sales price, this seems correct to me but the roof is handled differently by TTax and creates a 4797 entry which I believe is not correct because the form sez "other than casualty or theft". I cannot figure out what I have done incorrectly that TTax created that entry.
Would appreciate some feedback so I can get this sorted out.
