[StBernard] Insurance/tax question

[Westley Annis]

I saw this posted earlier about the tax ramifications of insurance money.
Can anyone with knowledge of tax law answer this?

"Deadline for Using Insurance Proceeds Extended"

"In order to avoid tax on insurance payments, the money must be used to
replace damaged or lost property. Businesses have two years to reinvest the
money; individuals have four. In both cases, the deadline is extended tofive
years provided the replacement property "is located within thedisaster
area." 

I wonder exactly how much tax will be charged if you DON'T rebuild "in the
disaster area (St. Bernard Parish), and just how far away from St. Bernard
is still considered "in the diaster area?"i.e. Northshore, Folsom, etc.

Can someone shed light on this? In view of the many unanswered questions
regarding safety/health issues, levee protection, availability/affordibility
of flood/homeowners insurance for St. Bernard, I think many will choose not
to rebuild there. Will they be penalized tax-wise for this decision???
Anyone???

Thanks for any help offered!