There was a fire in my rental house. I was reimbursed $53K, basis is $46K, cum depreciation is $32K, value before fire was $60K. Do I owe capital gains?

[stevanner]

Assume value of land is included in calculations.  And no, I don't wish to do a 1031 exchange.

[DDollar · Accepted solution]

If your basis in the house (excluding the land value) before depreciation was $46,000 and your cumulative depreciation is $32,000, then you have an adjusted basis of $14,000 ($53,000 - $14,000), then you have a long term capital gain of $39,000.