First: Thank you so much for your reply. I did NOT file this as a loss after the Marshall Fire. I don't know if that would have helped at the time (you mentioned something about 'exclusion'?) Anyway, the condo was purchased with a mortgage in April of 1985 for $67k. The mortgage was paid off in November of 2014. As I stated earlier, the condo burned down (along with 29 other condos) on December 30, 2021. The condo HOA used it's insurance claim to rebuild the 30 total loss condos that included the original finishing work inside (carpeting, appliances, etc.). The condo was finally certified for occupancy by the city on Oct. 16, 2024. (Since the fire, I have been living in a new what became my primary residence that was paid for by a relative, that is in my name). The condo was listed on Nov. 1st of 2024 for $425k and closed on December 16th. I received $385k (net sales after fees, commissions, closing costs, etc.) from the title company and immediately wired the entire amount to the relative who paid for my current residence. I spent about $5400 on adding blinds, ceiling fans, stage furniture, etc. before listing through a realtor. The only big upgrades done to the condo since it was built in 1985 was adding central AC (about $10k). All this was destroyed in the fire and it was discovered that the HOA insurance claim would cover the cost of replacing the AC (along with the furnace and hot water heater that came with the original condo, and NOT from my individual homeowner claim. My annual income is just under $49k after taxes. That's all I can tell you and I have no idea what other forms to file with my taxes next year that would help exclude or minimize whatever capital gains I might owe from this sale.
