I had a business asset that was fully depreciated through Section 179 accelerated depreciation in 2019. It was stolen last year and we received an insurance distribution. Turbo tax is calculating a negative amount in the "Dispose of Business Property" section on the Income Tab. Can someone explain this?
For context, I did not import from Quickbooks, but the way we accounted for this was to debit the loan on the assett (liability) and Credit the gain/loss (other income) on the asset. I did import last year's TurboTax file where the asset is fully depreciated.
Since the asset was fully depreciated, should this not be a gain? It looks like an offset to income.
