topic Is loss of rent coverage paid by insurance for my rental house considered income? in Get your taxes done using TurboTax

Is loss of rent coverage paid by insurance for my rental house considered income?

fkhalilz — Tue, 10 Nov 2020 01:43:00 GMT

There was a major accident in my rental house and my insurance company paid for most of the damages to repair it. They also paid some money towards "loss of rent" because the house could not be rented for a while. How should this loss of rent payment by the insurance company be reflected in my taxes?

Thank you!

Re: Is loss of rent coverage paid by insurance for my rental house considered income?

Anonymous_ — Tue, 10 Nov 2020 02:10:10 GMT

@fkhalilz wrote:

....How should this loss of rent payment by the insurance company be reflected in my taxes?

The amount the insurance company paid you for lost rent should be reported as rental income. You may even receive a tax reporting statement (such as a 1099-MISC) from your insurance company.

See https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-do-i-report-payment-by-insurance-company-for-damages-to-my-rental-property/00/154328

Also Treas. Reg. §1.123-1(a)(3)

Re: Is loss of rent coverage paid by insurance for my rental house considered income?

fkhalilz — Tue, 10 Nov 2020 20:07:44 GMT

So what happens if 1099-MISC is not sent by the insurance company? Do I still file the loss of rent payment by insurance company as rental income? When should I expect to receive this 1099-MISC by?

Thank you!

Re: Is loss of rent coverage paid by insurance for my rental house considered income?

Critter-3 — Tue, 10 Nov 2020 23:29:29 GMT

All the money paid to you by the insurance company (even the repair money) even if you don't get a 1099 in January. And then the expenses for the repairs will be a deduction on the Sch E.