gain or loss

[gman]

Office equipment destroyed by water damage. Equipment was section 179 and thus had a 0 basis. How would insurnace funds be reproted. All gain? What if new equipment purchased for replacement? All business assets.

[appelman]

All gain.

Section 1033 exchange should be possible.

[Kram BergGold]

1245

If a new piece of similar equipment is not bought (like kind exchange) you have 1245 gain on Form 4797.