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    Casualty Gain

    Client totalled car. FMV pre-$8700, FMV post-$0, client received $8700 from insurance company. Client bought replacement car for $7000. Where is the gain on the unreinvested proceeds reported?

    Form 6484 is set up to pick up the gain only if the client received more than the pre-FMV.

    Thanks in advance.

    #2
    No gain

    Originally posted by Jill Graff View Post
    Client totalled car. FMV pre-$8700, FMV post-$0, client received $8700 from insurance company. Client bought replacement car for $7000. Where is the gain on the unreinvested proceeds reported?

    Form 6484 is set up to pick up the gain only if the client received more than the pre-FMV.

    Thanks in advance.
    I do not believe there is a gain here. The reimbursement was for the exact basis amount. If insurance or other reimbursement was more than the basis, then the reimbursement, in excess of basis, is a gain.
    That's all I have to say ... for now.

    Moses A.
    Enrolled Agent

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