My inherited rental income house burnt down in 2020. I had insurance on it and they paid me out for total loss minus 1K deductible. The house was signed over to me in 2012 by my father but he did not pass away until 2016. I received structural payouts for the house and the garage. I received landscape payouts, clean up payout and loss of rents. I know I need to declare loss of rents payout as rental income. My question is: Do I have to pay taxes on the structural payouts? I believe the answer to this is yes. If so, then what is my cost basis, value when signed over to me in 2012 or when Dad dies in 2016? If my capital gains, payout minus cost basis (?) are invested in to a rental property (1031 exchange?) within 2 years do I have to pay taxes on them? If not invested, do I?
