Our rental property had an involuntary conversion due to casualty loss (hail destroyed the roof). The insurance payment exceeded the adjusted basis of the existing roof, so I have a gain. Since I used the insurance payment to replace the roof, I'd like to postpone the gain to the extent possible. In TurboTax, after entering the disposal of the old roof it says to delete the disposal entry if you qualify to postpone the gain. That action removes the corresponding Form 4684 but it does make sure the gain is not reported in net income. However, after entering the 1033 election for postponing the gain, TurboTax displays on the Results of Election screen to "Use Form 4684 to report the facts relating to the involuntary conversion and the replacement property." So here's my question - is Form 4684 really required since it was deleted as described above? If it is needed, how do I add it back while keeping the gain from showing up in my net income?
