topic Reporting a gain on a rental casualty in Get your taxes done using TurboTax

Reporting a gain on a rental casualty

jamesrob0723 — Mon, 23 Feb 2026 12:43:45 GMT

Restoration of my rental casualty was less than insurance reimbursement by $750. I've completed the 4684 worksheet. I entered the amount of insurance reimbursement on line 1e. On line 1f I entered the FMV and after casualty value (FMV minus the cost of restoration). The difference here shows that it cost less to restore to the original FMV than the Insurance reimbursement on line 1e by $750.

I cannot find anywhere in the program that shows a $750 income as a result of the gain.

Any help is greatly appreciated.

Re: Reporting a gain on a rental casualty

ErnieS0 — Tue, 14 Feb 2023 14:19:58 GMT

Your gain should flow from Form 4684 to Form 4797 and then to line 4 of Schedule 1.

If you are using TurboTax Online, you can preview your 1040 and Schedule 1.

Click Tax Tools in the left column
Click Tools below that
In the center column, select View Tax Summary
In the left column click Preview my 1040
You will see Federal 1040
When you are done, click Back in the left column

Re: Reporting a gain on a rental casualty

jamesrob0723 — Wed, 15 Feb 2023 11:48:56 GMT

Thank you. I thought it should, but it is not flowing there in TT. Either I am doing something wrong or I need to let TT know.

Re: Reporting a gain on a rental casualty

KrisD15 — Wed, 15 Feb 2023 14:53:18 GMT

Did you look at Schedule D?

It should be a long-term Capital Gain since this was reimbursement for Income Producing property if you held the rental for more than one year.

Also be sure to report the basis as only the basis for that repair, not the total value of the house.

So the basis should be the same as the FVM