I appreciate you trying to explain it to me but if it's no trouble is there any way you could explain using simple words? What happened was my barn went down in a tornado appraiser came out it was going to cost over $55,000 to have it rebuilt it was insured for less than that amount so they granted me the full amount that it was insured for but I had the barn excavated and buried for a total amount of $4,400 leaving over $20,000 left that I used to pay on my mortgage. Do I need to claim anything as income on my taxes?
