Sch E (rental) net casualty loss

[AZ-Tax]

I have a client that had a casualty loss on the rental and most of the loss was covered by insurance but still net loss to landlord. Assuming the landlord did NOT replace and/or repair the damages from the casualty loss and pocket the insurance money, how is this net loss to be treated?

Joe

[fliszt]

Isn't

the loss calculated Difference between base value of house prior to damage and base FMV of house after damage less insurance reimbursement less $100 = net loss. See TTB 4-21 for more info.