Casualty form 4684

[Terry D EA]

One of my rental property clients experienced a total loss of one multi-family building due to a fire. He has purchased three separate properties with the insurance proceeds and after all of the calculations, he has no gain from the insurance proceeds to report. Should I still fill out the 4684 or is the worksheet I created for the replacement properties sufficient. Does the disposition of the remaining depreciation of the lost property have to be reported on form 4797? I've not dealt with total losses too many times as you can tell.

[Terry D EA]

Okay just bumping this up. I think my original post was confusing. Anyway, I will report the casualty/loss on form 4684. All of the insurance proceeds were used to purchase replacement properties and this does become and involuntary conversion which also is reported as a sale due to the insurance proceeds exceeding the original cost minus accumulated depreciation. I think this should be reported on form 4797 and not Sch D simple because it is investment property transaction. This is confusing at best and as I muddle my way thru, I'll post what my findings are. Any suggestions will be helpful.