Thank You. Sounds like I treat the insurance claim as one lump sum and disregard the details of how much was allocated for each repair item. For 2020 the insurance claim will reflect as additional income as I didn't have all repairs completed even though the amount allocated for the roof was lower than the cost incurred. When I do have last repairs done in following tax year, that will be all cost incurred with no insurance payment as it was all paid in 2020. I am fighting with insurance company so I guess will see how things play out for next tax year. I wasn't sure if the right thing to do is to claim the insurance payout as income and also claim the repair of cost incurred or to just deduct the amount insurance paid against the replaced roof ($15K for roof vs $4K for roof)? Does make a difference here as the roof is depreciated over time.
