@ladylake wrote:
I also used the de minimus elections for all assets.
If you used the safe harbor de minimis election ($2500 or less) for personal property (assets used for your rental), then your adjusted basis for those assets is $0. Any insurance proceeds you recovered for the loss of those assets is 100% gain, which is taxed at ordinary income tax rates.
It is becoming increasingly clear that you may not have any kind of a loss whatsoever. You mentioned FMV, but did you get some sort of an appraisal (yes, it's necessary)? Where, exactly, is your loss?
