Question about Hazard Insurance on Rental Property. I had a rental house damaged by Hurricane Michael in 2018. When the insurance paid out the claim in 2019 for $75k, I found that this would not cover the rebuilding of the property. So, I sold the property in 2019 for $100k in damaged as-is condition. My cost in the property was $100k so it was sold for the same amount as the cost of the rental property. Since none of the $75k was used in rebuilding the home, do I need to claim that as income for 2019?.
