Insurance claim payment

[street]

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?

 

[VanWinkle]

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.

 

[street]

VanWinkle, thank you!!

 

[Sunset]

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.

 

[mystang52]

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.

 

[rk911]

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.

 

[street]

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.

 

[VanWinkle]

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.

 

[MrsHaloFIRE]

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

 

[VanWinkle]

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.

 

[Sunset]

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.