Client has a rental house hit by a Tornado.
ACB: 33000
Ins Proceeds: 33100
Repairs made: 4500 ( I don't know why so low, they continued to rent the property??)
How is this reported;
I'm thinking casualty gain of $100
What would the calculation for the new ACB be? Would the new acb be:4500(repairs)+$100 (the gain)=$4600? And does this new acb get depreciated over 27.5 years?
ACB: 33000
Ins Proceeds: 33100
Repairs made: 4500 ( I don't know why so low, they continued to rent the property??)
How is this reported;
I'm thinking casualty gain of $100
What would the calculation for the new ACB be? Would the new acb be:4500(repairs)+$100 (the gain)=$4600? And does this new acb get depreciated over 27.5 years?