Thank you for your response. You have raised a couple of important point about a basis reduction on a future sale and substantiating the FMV's. As far as the FMV's, I have copies of the reported sales that are from the county property records. Currently, I have no plans to sell in the near future. By local, do you mean a FL CPA or one where I reside which is not in FL? If I don't claim a casualty loss what is my other choice - report the total amount of insurance proceeds as income, pay the tax, which then won't reduce my basis in the future. Is this even possible? I am already planning to reach out to a CPA.
