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Old 09-19-2021, 06:40 AM   #1
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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?
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Old 09-19-2021, 06:47 AM   #2
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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.
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Old 09-19-2021, 07:06 AM   #3
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VanWinkle, thank you!!
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Old 09-19-2021, 11:21 AM   #4
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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.
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Old 09-19-2021, 11:41 AM   #5
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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.
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Old 09-19-2021, 06:12 PM   #6
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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.
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Old 09-20-2021, 05:57 AM   #7
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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.
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Old 09-20-2021, 06:31 AM   #8
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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.
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Old 09-20-2021, 07:11 AM   #9
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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
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Old 09-20-2021, 07:49 AM   #10
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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.
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Old 09-20-2021, 10:49 AM   #11
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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.
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