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rental property fire.

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    rental property fire.

    Taxpayer has rental property that is destroyed by fire. Insurance fully covers loss and taxpayer is not going to rebuild the rental property/.
    What forms are required to be filed on his return. Casulty loss?

    You wrote that the loss was fully covered by insurance, so there is probably no casualty loss. In fact there may be a realized gain, and if there is, it should be reported on F-4797. If there is a net loss, it should be reported on F-4684.

    "Involuntary conversions" are covered by Code 1033. The rules are somewhat similar to "like-kind" exchanges, but there are several important differences. The owner doesn't have to rebuild the destroyed property; he can purchase a different one. He can also purchase a corporation that owns or acquires similar property.

    The IRS's Pub 547 covers the whole subject quite well, as does TTB.
    Roland Slugg
    "I do what I can."