We had hail damage to the entire outside of our rental. Had to replace our roof and all the siding. We received just over 30k from our insurance company, which paid the majority of the expenses. My concern is I think we need to claim this insurance as income? But if I do this, then I can only depreciate the roof and siding, and can't counter the full amount from the insurance company? By the way, the previous roof was only 3 years old, so we were still depreciating that one. How do I work that out? Do I take the remaining years of depreciation left on the first roof as a loss somehow, or something else?
