New for me, not in principle but in the application. TP receives $5,000 reimbursement after hail damage on business property over and above funds spent on repairs. Adjusted basis in $10,000. How and when will I do the basis adjustment - end of tax year after claiming regular depreciation in current tax year? I am also wondering how to keep track of this adjustment. For a building, this will effect a lot of years. Any practical advise?