Do I depriciate aoppliances replaced by insurance claim

You must reduce the asset basis (cost) of the original assets that were replaced by the amount of insurance reimbursement.  And you can add a new asset for any additional costs above what the insurance reimbursed, if applicable.

Decreases to basis. (IRS Publication 527)

You must decrease the basis of your property by any items that represent a return of your cost. These include the following.

• Insurance or other payment you receive as the result of a casualty or theft loss.

• Casualty loss not covered by insurance for which you took a deduction.

• Amount(s) you receive for granting an easement.

• Residential energy credits you were allowed before 1986 or after 2005 if you added the cost of the energy items to the basis of your home.

• Exclusion from income of subsidies for energy conservation measures.

• Special depreciation allowance or a section 179 deduction claimed on qualified property.

• Depreciation you deducted or could have deducted on your tax returns under the method of depreciation you chose. If you didn’t deduct enough or deducted too much in any year, see Depreciation under Decreases to Basis in IRS Publication 551.

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