Reporting loss from a rental property fire and the insurance proceeds

[John Chapman]

I had a rental house that burned down.  I have owned it for a very long time and had depreciated most of the original purchase price.  I had replacement coverage insurance and received about 300K to restore the house.  Since my adjusted basis is about 50K, am I going to have a $250K gain on my income taxes this year? Is there anything I can do to reduce the gain?