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Level 2
posted Feb 7, 2024 9:54:27 AM

Insurance Claim/settlement

I filed a claim with my insurance company for damages to my roof after a storm.  Insurance company denied my claim.  I hired an attorney to represent me.  After 2 years, my attorney issued a check to me to pay for the damages.  I asked my attorney if I should expect a 1099-MISC from him or the insurance company for which he replied "no".  My question is, is this money taxable by the IRS? 

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1 Best answer
Expert Alumni
Feb 7, 2024 10:02:28 AM

This payment is for damage resulting in a loss in value of your property. This isn't taxable and you don't have to report it on your tax return.

 

Please read this IRS document, paragraph Loss-in-value of property.

2 Replies
Expert Alumni
Feb 7, 2024 10:02:28 AM

This payment is for damage resulting in a loss in value of your property. This isn't taxable and you don't have to report it on your tax return.

 

Please read this IRS document, paragraph Loss-in-value of property.

Level 2
Feb 7, 2024 11:29:51 AM

Thank you very much!  I appreciate it.