We lost rental home in '18 to water damage through freezing. The house was a total loss. We sold it for the value of land alone. How do we report expenses & losses?

pcullity — Sat, 01 Jun 2019 07:35:53 GMT

Before damage FMV was$135000. After, FMV was $40000 (tax assessed value of land alone. We lost the difference. How do we record and report it?

You will report the loss of your rental property on Form...

Leonard — Wed, 11 Mar 2020 20:58:30 GMT

You will report the loss of your rental property on Form 4684 Casualties and Thefts in Section B Business and Income Producing Property.

Using the figures you have provided the FMV of the house after the loss would be $95,000, (135,000 - 40,000) this amount will have to be reduced by any insurance payments you received and by the amount of depreciation that was taken on the property.

The amount remaining after deducting any insurance payments and depreciation will be the amount of your casualty loss. This link About Publication 547, Casualties, Disasters, and Thefts is to the IRS Publication 547 Casualty, Disasters an, Thefts

[Edited 03/11/2020 | 2:05 pm PDT]

topic We lost rental home in '18 to water damage through freezing. The house was a total loss. We sold it for the value of land alone. How do we report expenses &amp; losses? in Investors & landlords

We lost rental home in '18 to water damage through freezing. The house was a total loss. We sold it for the value of land alone. How do we report expenses & losses?

You will report the loss of your rental property on Form...

topic We lost rental home in '18 to water damage through freezing. The house was a total loss. We sold it for the value of land alone. How do we report expenses & losses? in Investors & landlords