KrisD15
Expert Alumni

Investors & landlords

If the insurance covers the damage, and the repairs are made, there will be no taxable event. No loss and no gain. 

You are not allowed to deduct "Lost Rent" while it s under construction. (There is no such thing as a deduction for lost rent)

 

If you have insurance funds left over, that amount will need to be reported as a gain. 

 

Here is more information. 

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