Hi @Carl ,
The loss occurred end of Dec 2021, the insurance proceeds were paid in Aug 2022. I am not selling the land, since we do plan to rebuild eventually. The land was excluded from the adjusted basis of the depreciation, since land is not depreciable.
On the 2022 tax return I assume I have to account for this involuntary capital gain from the insurance payout on the house structure. Since I only rented the house for 1 yr in the last 5 yrs, I assume I can avail of the capital gains exclusion.
So the question is how do I enter this all into Turbo Tax premier software? If I follow your procedure, I cannot exclude the capital gain. Please do advise.
Also another question, if I do rebuild the house from the proceeds, do I even need to report this insurance payout for 2022 return, since it will be used to rebuild the replacement property. Can the basis of the new house be reset and adjusted accordingly ?
Thanks,
