You'll need to sign in or create an account to connect with an expert.
You are correct. It's probably not taxable. In essence you have "sold" your home to the insurance company after the disaster, and we are sorry for your personal loss and hope all else is well with you. There are two situations that guarantee the amount is not taxable:
If the amount you received is a gain, however, and it has not been your primary residence 2 of the last 5 years, the difference is capital gains income and must be reported, and possibly taxed.
You will enter this information in the Sale of Home section, which this FAQ will help you to find: https://ttlc.intuit.com/replies/3300213
In fact, if the settlement is actually significantly below your basis, you may be able to claim a deduction based on a Casualty Loss. Here is an FAQ on this information: https://ttlc.intuit.com/replies/3301959
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
obeteta
New Member
snoblack
Level 2
saalves2424
New Member
lyratg
New Member
jeffellzey77
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.