That's what was confusing in TurboTax. I entered the FMV, which is the same number as my insurance payout. I did my FMV after the loss as $0 (also tried it with what the land is worth). No value I put into either FMV entry point had any impact on the taxes owed. TurboTax only calculated my tax as the difference between the cost basis and insurance payout.
Does this mean I shouldn't enter anything into this section when I file next year?
