I understand that in prior years it was a wash for you. Technically, the payments from the tenant should have been reported as income, and the payments to the insurance company should have been reported as an expense. Doesn't matter that it washed, as you can see by the issue that has been created for 2022. Now, you have additional income to report, as well as pay taxes on. I'm guessing that the last premium was actually paid in 2021, and you sold the property in 2022 before the next premium was due in 2022. So any additional monies collected from the tenant in 2022 would be additional, taxable rental income.
