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October 2, 2024
Question

Insurance gain From hurricane Ian relating to rental fixed assets not replaced

  • October 2, 2024
  • 1 reply
  • 0 views

I do not know how to report this via TurboTax.  I received the proceeds in 2023.  I have about 10 assets that I am not replacing.  They are more than 1 year old so the gain should be LT capital gain.  The IRS says I have to report it on Form 4684 and Schedule D.  Form 4684 in TT allows entry only as Property A,B,C & D.  I cannot find any input for the individual assets.  Also the Hurricane occurred in 2022 and TT only wants be to use 2023 as a date.   Do I prepare Schedule D first?  How will it know to flow to Form 4684 or vice versa.  I cannot figure out how to enter this in TT.   I could report it on the miscellaneous line but then I would not get the benefit of the LT gain.  Please help as I am running out of time for filing and don't want to file an amended return.

    1 reply

    Employee
    October 2, 2024

    These items (assets) were used in conjunction with a rental property?

     

    That would make them business assets, effectively, and should not be reported on Form 4684.

    Employee
    October 2, 2024

    Further, were the items being depreciated or expensed as rental assets?