If insurance fully reimburses for casualty damage, with no resulting gain or loss, is Form 4684 required for the basis adjustment?
Simplified example: a business asset cost $10,000, had $2,000 damage from an accident, and insurance provided $2,000 for the damage. Basis is reduced by $2,000, but there is no gain or loss to report.
It doesn't appear that form 4684 is mandatory...
Thanks,
Vince DiChiacchio, CPA