You need to look in the Assets/Depreciation section to get the total amount of depreciation taken on the property.
Basically, you're going to delete the rental property asset listed, and replace it with a new listing.
Your "cost" of this asset will be as follows:
What you paid for the rebuid, and DO include in that amount what the insurance company paid, plus the cost of the land that you originally had allocated to the land portion in the original asset listing, plus the amount of depreciation taken on the structure prior to the fire.
So for the total amount you will enter in the COST box, it's
What you paid for the rebuild
PLUS
What you allocated as value to the land on the original asset entry for the rental property
PLUS
The amount of depreciation taken on the property prior to the fire.
Let's use some actual numbers here.
Originally paid $100,000 for the property. When I entered it into TurboTax in the COST box I entered $100,000. Then in the COST OF LAND box, $30K of that $100K was for the land. So I entered $30K in the COST OF LAND box. The program does the math and deprecated $70 for the structure over 27.5 years.
Now I'm 10 years in and the house burns to the ground. Total loss. At this point, I have taken a total of $25,500 in depreication on the house over the last 10 years.
Cost to rebuild was $150K. So I select the "Add an Asset" button in the program. I'll probably enter "new construction" or something like that for the description. Then for the cost box here's the math.
What I paid for the rebuild -------------------------------$150,000
Amount allocated to land ORIGINALLY -------------- $30,000
Amount of depreciation already taken prior to fire- $25,500
TOTAL -------------------------------------------------------$205,500 (This is the amount to be entered in the COST box)
For COST OF LAND box, you take the original cost for that and add the depreciation already taken to it. So using my numbers above the COST OF LAND box will have $55,500 entered in it.
Now, depreciation will start anew and it's gets depreciated over 27.5 years starting from the "in service" date you will enter (discussed below).
Now here's the tricky part. I'm assuming this rebuild was completed in 2017. If so, then this isn't so "tricky" really. You know that part of your insurance payout that was for "lost rent"? Well guess what? It's taxable income to you. You have to report it and pay taxes on it.
Make the "in service" date for the property, the day the CO (certificate of occupancy) was issued. Then when you get to it, enter the rental income received from the insurance company and press on.
For the original asset (the one that burned down) you need to delete it from the Assets/Deprecation section. All required information from that old asset has been transferred and accounted for in the new asset for this property.
Finally, finish working through the rental property "as if" you did not sell it. Once it all works out, let me know and I can provide you the details (which are easy in comparison to the above) necessary for you to report the sale of this property.
