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Insurance payment are suppose to be a wash , only restore your property to the condition it was before the claim.
If the insurance payment was not enough to cover the damages , you only expense the out of pocket cost that the insurance did not cover.
If you receive insurance reimbursement that is more than the destroyed or damaged property, you may actually have a gain[ taxable income.]
If you had a special insurance rider: and the insurance payment also covered lost rental income that amount which will be listed on the itemize insurance payout is claimed as rent.
Insurance payment are suppose to be a wash , only restore your property to the condition it was before the claim.
If the insurance payment was not enough to cover the damages , you only expense the out of pocket cost that the insurance did not cover.
If you receive insurance reimbursement that is more than the destroyed or damaged property, you may actually have a gain[ taxable income.]
If you had a special insurance rider: and the insurance payment also covered lost rental income that amount which will be listed on the itemize insurance payout is claimed as rent.
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