I have a farmer who lost barns and equipment in a fire. He has no basis(fully depreciated) in any of the affected assets. My research has shown that he will have a gain from the insurance proceeds unless he reinvests into like assets within 2 years. Does anyone have any experience with this sort of thing?
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Involuntary Conversions
Good info in Pub 544 and The Taxbbok regarding the basic requirements of these type of conversions.Other than that your going to have to provide specific facts and questions. -
Casualty Loss
I'm not sure it is the same type of situation, but we were hit by a tornado in 1999. Since we had replacement coverage, the insurance company would only reimburse us if we purchased/built "like kind-like quality"....they didn't just write a check for the damage except for items they took as "salvage" (i.e. horse trailers). All other items had to be purchased, then we were reimbursed for the amount of the replacement item (house/equipment/barns/etc.)
I'll follow your post to see what others say about their experience with this type of loss.Comment
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