Hello, can you direct me to the best place to ask this question?
A personal residence is destroyed completely in a tornado and it was in a "declared disaster area"
The original cost of the home was $165,650 - $27,500 land = $138,150K, a Home office in the home was taken for years, 33.33 percent.
So, House was around $92105(66.66%), and the home office was $46,045 (33.33 percent)
Cost or adjusted basis of Home office= $46,045 minus dep allowed or allowable $21,724 = $24,321
Cost or Adjusted basis of Home $92,105
I tried using "Schedule 20. Home (excluding contents)
Value of home before tornado on date of Tornado was $400,000
The insurance paid out 400, 000.
The home was rebuilt for $450K and on the same LAND for $450,000. So, they spent more on the rebuild.
How do you postpone or transfer and gain on the business portion of the home?
Turbotax does not seem to explain how to compute this and what exactly to do. I thought it said, it could all be forwarded to the new house, meaning, any "gain" of any kind on the sale of the home, If there was one.
Since there was a "gain" of the Home used for personal use, and for the "office in the home" part.
- I tried using pub 584 and the worksheets, but I went off track somewhere, (I say with a smile).
I read somewhere any gain gets added to the next home but, I am not sure how to show it or do it.
Can you
