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Financial Planning / Tax Strategies


Subject:  Re: Rental house questions Date:  11/13/2013  10:48 PM
Author:  ptheland Number:  119510 of 123001

1 Is filing Form 4684 Casualties and Thefts required in this case where the cost of restoration and insurance payments should net to zero?

Not in my opinion. Others may disagree. And the repairs equaling the insurance reimbursement has nothing to do with my answer. I would simply report the repairs net of any insurance reimbursement.

2 Is insurance compensation for lost rents included on Sch E, Line 3 with normal rental income?


3 Can the cost of the new plumbing stack, toilet flange and toilet be included on Sch E Line 14, Repairs?

I would. They are not extending the life of this business asset, they are allowing you to keep the asset in us