I just want double check if I'm doing this right. In 2022, I filed an insurance claim to replace the roof on a rental property. For illustration purposes, the total replacement cost billed by the roofing contractor was $10K. The insurance paid me $6K and the $4K difference was the deductible I had to pay out of pocket. The roof replacement was completed at the end of July 2022. Do I report the $6K as rental income and then treat the entire $10K as a capital improvement to be depreciated over 27.5 yrs? Thanks!
