Hello,
Yes, it was a national disaster. It was the River Fire (lumped together as a national disaster with other Northern CA fires last summer). Our accountant was able to offset some of the taxes, even though payments were more than the adjusted basis. We bought the property, just a year earlier, before prices inflated tremendously in this area, especially construction costs. So the damages were far more than what we received from insurance, however, this was still considered a gain.
