Hail damaged the roof on my rental single family. The roof cost $16,000. Insurance paid $15,000, I paid the $1000 deductible.
My best guess is that I add the full $16,000 roof as a new depreciable asset ($15,000 insurance plus my $1000 deductible) .
Do I then show the $15,000 insurance payment as income? If so, where do I enter it as line 3 of the Sched E worksheet only shows RENTAL income. Or is it not reportable income as it was reimbursement for an insurance loss.
