This past summer I had hail damage to my rental property. I received an insurance claim payout to cover the damage to roof, gutters, paint/siding, etc. minus my 5k deductible. So far, only the roof and gutters have been replaced.
I am uncertain of how to handle this on my taxes, specifically I am not sure where this information gets placed. Do I need to fill out form 4684 section B?
Or do I need to capture the roof replacement on my schedule E as an improvement? If so, would the cost of the improvement just be the portion of my deductible for the roof since insurance paid for it?
Also, I am wondering if it would be acceptable to not include this event anywhere on taxes and not take a loss? This seems easiest to me, but I am not sure if it can be handled that way.