Have a Tax Question? Ask a Tax Expert
Are you replacing the property?
What was the value of the property at the time of the conversion? you state it has resulted in business income of 10K, but you are not saying it represents a capital gain?
Thank you for that information. But here is what is involved.
I am still not getting enough information about your loss.
The issue here is, that whether or not report the income and when depends on the circumstances of the loss including what was lost and how it was lost.
Did peice of equipmenet get stollen, or a building burn, etc?
If you are replacing it, you have a time period in which to replace it before you report it and, and to determine if it is a gain or loss on the property.
I am sorry, but I do not want to have to resite the entire law and text of how these things are handled, that would take a couple of hours.
I would like to target my answer to your circumstances.
Please tell me more about your loss, do not hold back.