Yes, reimbursement claims on a Business Interruption Insurance policy are taxable as ordinary business income. Depending on your type of business, this income may be entered wherever you would report "other income."
The IRS considers these payments to be a replacement of income that the business would have earned during the event that caused the interruption. Also, most business expenses continue to accrue and/or be paid, and may actually exceed the amount of the reimbursement.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
