I received a settlement through the CA Fire Victims Trust for damages to my real property during the 2018 Camp Fire, which is a combination of a residential rental on about 2 acres, and a farm operation of 40 acres, mostly for grazing goats and cattle. The settlement was for burn damages to the property, numerous trees had to be removed, stump holes filled in, brush cut, piled and burned, and it took several years to get it all done. I had some issues with the settlement details, so held off on the processing of this portion of the claim for a while. I signed the paperwork on 11/29/2023, and received a check on January 3, 2024. My first question is whether I should include this for 2023 income, because I could have received it in 2023 had I signed earlier, or is it for 2024 income?
Second: I am confused about where to enter the info for form 4797. This was or is in a Federally declared Disaster, but I am unsure whether it still is a Qualified Disaster Area for purposes of tax reporting. I have legal fees amounting to 25% of the settlement - do those go on Farm Expenses or as expenses against the involuntary conversion (sale) of the real property?
Third: I understand I can replace the property in 2024 with a like service real property, which is underway via construction of a barn which will be completed in 2024. But I cannot figure out where to put all this information on the form 4797, or how to find it in the step-by-step process.
