My business suffered a fire that resulted in a total loss. Insurance reimbursed the following expenses:
Building Remediation, Restoration and Renovation- everything insurance reimbursed was paid to our contractor/restoration company
Personal Property- everything insurance reimbursed was used to purchase new business property; we had additional expense that was not covered by insurance in this category
Ongoing Business Expenses and Business Income- obviously in this category I would claim the amount used for business income coverage; currently I have the entire amount in this category listed as 'Other Business Income' and have line item expensed the ongoing expenses and shown the rest as business profit. Is this correct?
How do I file/claim the payments from my insurance for building restoration and renovation and for personal property? I've seen people refer to cash basis in discussions about loss, but I'm unsure what my basis would be; is that relevant or necessary in this case? Have I accounted for the ongoing business expenses and business income properly? Thanks for any help on this!
