Hello
I have a rental property that had a casualty (fire). The property has always been a rental property.
The insurance payout was $100,000
I have decided not to make repairs but to sell the property "as is".
If I sell the property "as is" is the insurance payout classed as income since I didn't use for repairs?
The adjusted cost basis of the property is $70,000. If I sell for $130,000 the capital gains will be $60,000. Correct?
