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End of Year Rental Casualty

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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4 Replies

End of Year Rental Casualty

See https://www.irs.gov/taxtopics/tc515

 

I will also see what @Mike9241 thinks.

Carl
Level 15

End of Year Rental Casualty

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.

End of Year Rental Casualty

report in 2022

End of Year Rental Casualty

Thank you.

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