schirallicpa Posted September 18, 2018 Report Share Posted September 18, 2018 TP has Sch E rental house that he paid peanuts for ($16000) but has a decent value and insurance gave him $50000 after a fire. Then he sold it as it stood for $10000. But he has other houses that he rents. Is he having to report all gain on the insurance proceeds or can he invest in his similar business assets? Quote Link to comment Share on other sites More sharing options...
Lee B Posted September 18, 2018 Report Share Posted September 18, 2018 You didn't say whether this happened in 2017 or 2018? It matters because of the TCJA. 1 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted September 18, 2018 Author Report Share Posted September 18, 2018 Sorry - I just assume everyone is still in 2017 like me. Heck - I'm still in 2016 sometimes! This is 2017 1 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted September 18, 2018 Author Report Share Posted September 18, 2018 But do gains on sales of properties count for TCJA. Otherwise he has a loss on schedule E Quote Link to comment Share on other sites More sharing options...
Max W Posted September 19, 2018 Report Share Posted September 19, 2018 23 hours ago, schirallicpa said: But do gains on sales of properties count for TCJA. Otherwise he has a loss on schedule E You said this occurred in 2017, so TCJA has no effect Here is a good article on deferring gain on the excess insurance. There are a lot of variables, so it should be read carefully. http://williamsparker.com/publications/practice-alerts-articles/real-estate/2005/01/03/taxation-of-the-recovery-of-insurance-proceeds Quote Link to comment Share on other sites More sharing options...
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