How is the insurance payment handled if you receive it one year (2023) but don't replace the roof till the next (2024)? Our accountant says it just goes under rental income, but it really isn't and will be used to replace the roof this year. I understand any excess over what we pay to replace it is taxable income, but isn't there some entry that should prevent it from being taxes as regular income? There was no loss of rent . Thank you!
