@Anonymous_ wrote:
@Opus 17 wrote:
Now that I think of your specific example, if the cost basis was $150,000 and the insurance payment was $350,000, the taxpayer would be required to report and pay tax on a $200,000 capital gain in the year of the insurance payment.
The total purchase of the property (the cost of the land plus the cost of the house), I have to presume, was more than the $150,000 @Caroleg22 received for just the land.
In her other post she said she bought the whole thing for $150K, then sold the land for $150K after the fire.
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-then-you-have-nothing-to-repo...
