Cost Segregation - Partial Disposition and offsetting insurance proceeds

[Costin I.]

We had a roof damaged in a hail storm and got it replaced and paid (minus deductible) via an insurance claim. This is on a property that had a CSS done on it some 6 years ago when we got it (and placed a new roof at that time too part of the rehab). I talked with our CPA about doing a partial disposition but he thinks that "the insurance proceeds won't be taxable assuming all the money was put back into the property" and the "partial disposition is probably less favorable than doing a direct offset and just not putting new assets into service".

I understand the first part ("the insurance proceeds won't be taxable"), but I disagree with not doing the partial disposition. From my understanding of CSS and partial dispositions, one (taxing insurance proceeds) has nothing to do with the other (tracking depreciation or doubling on depreciating assets). 

CPA and CSS experts, can you help me confirm or correct my understanding? 

[Jason Watson]

Very simple. Ask your CPA to give you a tax plan with each scenario. We do this all the time.