@Carl
TTax Premier 2022 Desktop
Background:
Fire at one of my residential rental properties in 2022 rendered that building uninhabitable and I received an insurance payout for total loss, including a loss rents payout.
Loss of rents was added to rental income but I decided not to try adding the entire payout to income and to try to go the sale route instead, keeping the land.
Burned building and most assets have already been totally depreciated. Adjusted basis of subject property assets = < $100.
Demolition started in mid Nov 2022 and finished in 2023 (I know I to add demo costs as land improvement).
I have a buyer for the 'improved' now vacant land which should close by Feb 2023 but because I received insurance in 2022 then the building was 'sold' in 2022 to the insurance co.
I'm trying to work through the insurance payment as a sale, keeping the land in 2022 which I'll have to revisit on the next tax year for the pending sale.
Question:
When working through the Rental Property Profile section, on the screen "Do any of these situations apply?" there is the choice "Sold" & "Converted".
The help box for "Sold" says "check if the entire interest was disposed" but since I still own the land I can't check this box, right?
Or should I check "convert to personal" use? Or should I check both? Or neither?
And continuing on through other sections of the program, in the Income Section there is "Sale of Business Property" and in Deductions Section there is "Casualties & Theft"
Should both sections be completed? It seems to me they may be redundant.
