insurance payments deposited to Paypal for a fire.

Forum|Forum|3 years ago
January 30, 2023
1 reply
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Hello,

In Oct 2022 there was a fire in our rental property in another state. We have been working on the house and completing the repairs at this time. The house was insured for repairs. I have had the insurance payouts deposited into the Paypal account I use for the property. My question is how do I go about separating the payouts on the 1099 so I do not have them as income? For ex: it shows I took in 43K in December.

Thank you,

Karen

TurboTax Business Windows

PatriciaV

Employee

It depends. Form 1099-K is an informational report from payment processors to the IRS. TurboTax does not provide a separate topic for entering 1099-K because these payments could result from many different sources. You decide how you wish to report the income (if any) on your tax return, even if you don't report the entire amount from 1099-K.

Insurance proceeds are generally not taxable, as long as the money is used to repair the damage to or replace the insured property.

Any other income included on Form 1099-K should be reported under the appropriate area of your tax return.

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