Question about reporting an insurance settlement after loss in wildfire

[coffee_bob]

I owned two duplexes that were destroyed in one the wildfires in California last year. Within a month my insurance had paid me fully for my loss. I understand that I am liable for the capital gains taxes unless I reinvest in something in 24 months. Do I need to mention about the loss on my tax return this year or can I wait until the tax is due?

 

[Taxing Matters]

I owned two duplexes that were destroyed in one the wildfires in California last year. Within a month my insurance had paid me fully for my loss. I understand that I am liable for the capital gains taxes unless I reinvest in something in 24 months. Do I need to mention about the loss on my tax return this year or can I wait until the tax is due?

You may elect to postpone reporting the gain until the 2 year period closes. See the discussion of that starting on page 13 of IRS publication 547.

 

[coffee_bob]

Thank You. I will check it out.