PaulaM
Employee Tax Expert

Investors & landlords

No, do not add the roof as a new asset. The cost of the repair (replacement) would be entered as rental expenses. Add the insurance reimbursement as rental income.

Taxes are then paid on the $3,296 difference. See article below for reference.

Tax implications of Involuntary Conversions

[edited 1/11/18 5:36 pm PST]

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