Hail storm 4/1/17. Insurance proceeds for new roof $26,063. Cost of new roof $22,767. Seems to me I should have a gain of $3,296, but roof is not a separate item on Turbotax. Building purchased 10/31/92. Cost (excluding land) $63,857. Depreciation through 12/31/16 $53,890. Turbotax wants to tax me on $15,800, the difference between the $26,063 paid by insurance and the land cost, assuming the building was totally destroyed, but only the roof was damaged. Is this the correct way to enter? I don’t have the roof as a separate asset in the rental property section. What about the cost to replace the roof? Do I start a new asset called roof at $22,767?
