Skip to main content
TurboTax
Community
TurboTax
Community
TurboTax
Community
N
naokoktax
May 22, 2025
Question

Profit income form insurance company due to fire

  • May 22, 2025
  • 1 reply
  • 0 views

Hello, everyone.

I have a client who has $100K from insurance company due to fire.

It was for his investment rental property.

He used $60K to fix the property and $40K left.

I think he has to file this gain on Schedule D.

He has passive loss for this property from previous year but he cannot deduct if he choose "not actively participate".

Does he have to choose "Active Participation" to offset this gain?

Or please give me any advice to offset this gain and passive loss.

1 reply

M
Mike9241
May 22, 2025

if you are preparing returns, you should know that this is a business casualty loss. whether any portion is taxable is determined by completing Section B on form 4684. 

    N
    naokoktaxAuthor
    May 25, 2025

    Thank you very much.

    I will use Form 4684.

     

    Thank you for your help!!

    TurboTax Sign In Widget
    TurboTax flag icon

    Unlock tailored help options in your account

    Create an account
    TurboTax Expert Assist
    TurboTax Expert

    Get answers to all your tax questions

    Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.

    Terms & ConditionsCookie settingsAccessibility statement
    Intuit
    TurboTax Credit Karma QuickBooks MailChimp

    ©1997-2022 Intuit, Inc. All rights reserved.
    Intuit, QuickBooks, QB, TurboTax, ProConnect, and Mint are registered trademarks
    of Intuit Inc. Terms and conditions, features, support, pricing, and service options
    subject to change without notice.

    Security Certification of the TurboTax Online application has been performed by
    C-Level Security.

    By accessing and using this page you agree to the Terms of Use.

    Accessibility

    TRUSTe nResult Certified e-File C-Level Security Certification