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An insurance claim on rent house, where do I put it?

Forum|Forum|7 years ago
June 1, 2019
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Best answer by MichaelL1

If you used it for major repair, apply it to the repair and then deduct the difference.

For example, damage cost $4,000 to fix, insurance paid $3,200, you would have a $800 repair expense.

In the above example if you got $4,500 from insurance, then list the $4,500 as general income to the rental and take a deduction for $4,000 in repairs (net will be $500 income).

Either offsetting it or reporting the entire amount of income is acceptable. If a1099 was issued from the insurance, company then report the entire amount as income and deduct the expense you incurred to fix it under repairs.

MichaelL1Answer

Employee

If you used it for major repair, apply it to the repair and then deduct the difference.

For example, damage cost $4,000 to fix, insurance paid $3,200, you would have a $800 repair expense.

In the above example if you got $4,500 from insurance, then list the $4,500 as general income to the rental and take a deduction for $4,000 in repairs (net will be $500 income).

Either offsetting it or reporting the entire amount of income is acceptable. If a1099 was issued from the insurance, company then report the entire amount as income and deduct the expense you incurred to fix it under repairs.