WITAXLADY Posted February 28, 2021 Report Posted February 28, 2021 A fire destroyed a skidsteer and they received $9800 - It's value but of course it was sec 179 - I read that proceeds from insurance up to the value are not taxable.. Do I ignore it? And the same with part of the barn - as they did part of the work - not as much cost as received. Thank you, Darlene from sunny WI Quote
Lee B Posted February 28, 2021 Report Posted February 28, 2021 Assuming it was business asset, it's handled just like it was sold. Here in Oregon the daffodils should bloom any day now 3 Quote
BulldogTom Posted February 28, 2021 Report Posted February 28, 2021 Did they replace the skidsteer? If they did, you have an involuntary conversion and the new skidsteer will have a basis equal to the basis of the property destroyed (plus any amounts paid above the insurance reimbursement). If they did not replace the property and pocketed the money, then they have a sale or other disposition and the insurance $ received is the sale price. Tom Modesto, CA 1 Quote
WITAXLADY Posted February 28, 2021 Author Report Posted February 28, 2021 Thank you - yes they replaced the skidsteer - The barn? It becomes income then.. going against expenses? Quote
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