I would think there is no new asset to add since there was no bottom line cost. Just a gain from insurance proceeds in excess of cost. Otherwise OP would get benefit twice. See a response from another superuser to a similar question: <a rel="nofollow" target="_blank" href="
https://ttlc.intuit.com/questions/4133912-for-a-rental-property-the-insurance-payments-are-greater-t...>
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