Casualty losses are reported on Form 4684 and carry over to Schedule A.
Apparently, I'm not understanding something. How is this a casualty loss? Per your prior post in this thread, you instructed that it be reported as a sale with a sale price of zero. So as far as TTX is concerned, the asset was sold at a loss. It's not a casualty loss.
It's my understanding that when you report the sale of the asset at a loss and the sale does not include the sale of the entire property and all of it's assets, the remaining depreciation not yet taken is suspended until the "entire" property is sold. I don't know off the top of my head what forms this carry over loss shows on though.
