Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Insurance claim payment
Old 09-19-2021, 06:40 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
street's Avatar
 
Join Date: Nov 2016
Posts: 5,301
Insurance claim payment

Is an insurance claim payment considered income? My payment I want to put in bank and maybe do my roof next year or the following spring. Shingles are in good enough shape to get a few more years out of them.

So, how does the IRS view this money?
street is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-19-2021, 06:47 AM   #2
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Morton
Posts: 1,859
Quote:
Originally Posted by street View Post
Is an insurance claim payment considered income? My payment I want to put in bank and maybe do my roof next year or the following spring. Shingles are in good enough shape to get a few more years out of them.

So, how does the IRS view this money?
A property or casualty loss payment is not considered income.
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Old 09-19-2021, 07:06 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
street's Avatar
 
Join Date: Nov 2016
Posts: 5,301
VanWinkle, thank you!!
street is online now   Reply With Quote
Old 09-19-2021, 11:21 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 12,317
Quote:
Originally Posted by street View Post
Is an insurance claim payment considered income? My payment I want to put in bank and maybe do my roof next year or the following spring. Shingles are in good enough shape to get a few more years out of them.

So, how does the IRS view this money?
if this claim is for roof damage, be aware your insurance will no longer cover damage from the unfixed roof.

Also delaying the fix, means should the roofer charge extra (rotten wood discovered when roofing), the insurance company will not pay extra due to the time delay, but they would (in my experience) if the repair is done immediately.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Old 09-19-2021, 11:41 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,315
I'm not an accountant, or a lawyer. Insurance payment is contractually an indemnification. In other words, payment to return you back to whole, so it's not a windfall. That is not income.
mystang52 is offline   Reply With Quote
Old 09-19-2021, 06:12 PM   #6
Thinks s/he gets paid by the post
rk911's Avatar
 
Join Date: Dec 2018
Location: DuPage County IL
Posts: 1,535
Quote:
Originally Posted by street View Post
Is an insurance claim payment considered income? My payment I want to put in bank and maybe do my roof next year or the following spring. Shingles are in good enough shape to get a few more years out of them.

So, how does the IRS view this money?
non-taxable to the feds and presumably the same to your state.
__________________
Rich
Ham Radio, Sport Pilot, RVer
FIRE: 8/11/2005, age 55y,1d
Administrator for a regional 9-1-1 call center
rk911 is offline   Reply With Quote
Old 09-20-2021, 05:57 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
street's Avatar
 
Join Date: Nov 2016
Posts: 5,301
Thanks for that confirmation and clarity. My roof is really pretty good shape to last through the winter and in to next year. I have installed new shingles where wind damage happened. One issue in my area there is so much roof work needed there isn't the contractors available to keep up with demand. I really don't want to install shingles going into these cold days ahead, without some very warm days to make that seal.
street is online now   Reply With Quote
Old 09-20-2021, 06:31 AM   #8
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Morton
Posts: 1,859
Quote:
Originally Posted by street View Post
Thanks for that confirmation and clarity. My roof is really pretty good shape to last through the winter and in to next year. I have installed new shingles where wind damage happened. One issue in my area there is so much roof work needed there isn't the contractors available to keep up with demand. I really don't want to install shingles going into these cold days ahead, without some very warm days to make that seal.
Repairs within 1 years is usually considered reasonable by most Insurance Companies for property damage that is not causing additional exposure(hole
in roof allowing water in). I'm retired from claims division of a large Insurance Company.
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Old 09-20-2021, 07:11 AM   #9
Full time employment: Posting here.
MrsHaloFIRE's Avatar
 
Join Date: Jun 2018
Posts: 829
For my insurance you have 1 year. I think they wont give you the held back depreciation after that point. They hold a little money until you submit proof of repair then they pay it out. Usaa
MrsHaloFIRE is offline   Reply With Quote
Old 09-20-2021, 07:49 AM   #10
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Morton
Posts: 1,859
Quote:
Originally Posted by street View Post
Thanks for that confirmation and clarity. My roof is really pretty good shape to last through the winter and in to next year. I have installed new shingles where wind damage happened. One issue in my area there is so much roof work needed there isn't the contractors available to keep up with demand. I really don't want to install shingles going into these cold days ahead, without some very warm days to make that seal.
I agree with a well sealed roof- Hot days are better for asphalt roofing.
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Old 09-20-2021, 10:49 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 12,317
Quote:
Originally Posted by street View Post
Thanks for that confirmation and clarity. My roof is really pretty good shape to last through the winter and in to next year. I have installed new shingles where wind damage happened. One issue in my area there is so much roof work needed there isn't the contractors available to keep up with demand. I really don't want to install shingles going into these cold days ahead, without some very warm days to make that seal.
Sounds like you decided on shingles and not a metal roof.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Insurance claim and premium increases Sojourner FIRE and Money 4 03-06-2016 12:19 AM
When Can You Claim a Tax Deduction for Health Insurance? easysurfer FIRE and Money 16 11-03-2015 08:13 AM
Anyone Make a Claim, with Individual High Deductible Health Insurance Policy? John Galt III Health and Early Retirement 5 02-24-2013 04:48 PM
Car Insurance Claim Question TromboneAl Other topics 12 04-24-2011 12:22 PM

» Quick Links

 
All times are GMT -6. The time now is 03:10 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.