The accounting treatment of the insurance reimbursement is different from how it's reported on your tax return. Once you have replaced the roof, you can determine if you have a reportable Tax Gain or Loss. Until then, the insurance payment is not taxable income.
Here is the reference from IRS Pub 547 Insurance and Other Reimbursements
@Cincolo
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
