We received a check for damages to a job from an insurance company. Do we have to report this as business income?

[lisainharbor]

One of our vechiles dropped melted snow/salt on a green concrete drive.  Our insurance company processed the claim through our commercial auto policy.  They paid out $8750 and we used those funds to hire the concrete contractor to replace the drive way.  Do I need to report the income from the claim?

[IreneS · Accepted solution]

Yes - You have to report the payment from the insurance as business income.

Normally, the repair expense is deductible from income, potentially offsetting the income inclusion in full.

[lisainharbor]

THank you. This is what I was thinking, but I wanted confirmation.