Yes. The taxable part of the insurance payment will be reported as income for the year you regain the use of the property. Note that any loss would be deductible only if the fire was due to a federally declared disaster.
Also be aware that the reimbursement for lost rent is taxable as rental income, which may be offset by ordinary rental expenses (unrelated to the fire).
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
