Does insurance claim received get reported as "other income" and the associated repair expense get reported as "other deductions" on Form 1120-H?

[gregk0]

Our homeowners association received funds from an insurance claim from a third party who caused damage to our common property.  We used those funds to repair the damage to our common property.  How do we report the insurance funds received and the associated repair expense on Form 1120-H?  Does the income get reported under "other income" since it is nonexempt income?  Does the repair expense get reported under "other deductions"?

[MinhT · Accepted solution]

If the insurance payment is just enough to cover the repairs, you do not need to report anything on form 1120-H.

If the insurance payment is in excess of the repair costs, you report the excess as Other income (line 7 of form 1120-H.

If the insurance payment is short of the costs of repairs, you report the shortage as Repairs and Maintenance.