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