I should have clarified in my original post. I received approximately $8000 in lost rent for the time that it was estimated it would take to rebuild. Structure was severly damaged and insurance ended paying out policy limits $175k. I know the $8k received for loss rent has to be reported as rental income but I've never heard of the insurance reimbursement on a casualty claim being treated as income. My understanding is that it essentially works as if I sold the property and received $175k for it and the portion above my "basis" is treated as a gain unless i buy like kind property within two years. I was just wanting to confirm that and if anyone knows how that is handled in turbo tax.
