@sjb12 wrote:
Hi. I received money from the same program. However, this property is a rental and not my primary residence.
The roof had a few more years left on it, but the insurance company suggested i get it done while the program is out there. I got a 1099.
The money offset a $13,000 roof job. If i had a "regular roof" put on, it would have cost about 8000.
shouldnt this 6,000 be considered "income" somewhere on Schedule E? i have no place to put it other than on the "rent line".
thoughts?
Yes, it's still taxable because it's free money. If it was an insurance reimbursement for storm damage, it would be reimbursable to the extent that it was more than your storm cost, but that does not seem to be the case. Then, you will enter the entire $13,000 cost as a depreciable asset.
(If it was not taxable, the cost of the improvement for depreciation would be your net cost. But I believe it is still taxable.)
