I had a casualty in DEC of 2021(~$10,000). The only expense at the time was replacement of an appliance and drying the water damaged areas. The Insurance payout and repairs took place in 2022. The only rental deduction on the 2021 tax return was the cost of drying the water damaged area. The rental is house (structure) is completely depreciated out.
Do I amend the 2021 return to include the entire casualty or do I include it on the 2022 return? Should it span both years (in which I would need to amend the 2021 to include appliance depreciation)?
Thanks in advance.
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The only rental deduction on the 2021 tax return was the cost of drying the water damaged area.
I would assume those expenses were reported on your 2021 tax return.
The Insurance payout and repairs took place in 2022
That would be reported on the 2022 tax return then.
report in 2022
Thank you.
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