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09-19-2021, 06:40 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,373
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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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09-19-2021, 06:47 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,596
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Quote:
Originally Posted by 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?
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A property or casualty loss payment is not considered income.
__________________
Retired May 13th(Friday) 2016 at age 61.
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09-19-2021, 07:06 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,373
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VanWinkle, thank you!!
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09-19-2021, 11:21 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 16,973
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Quote:
Originally Posted by 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?
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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
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09-19-2021, 11:41 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,936
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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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09-19-2021, 06:12 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Dec 2018
Location: DuPage County IL
Posts: 2,697
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Quote:
Originally Posted by 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?
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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
Dispatcher, then shift supv, then administrator for a regional 9-1-1 call center
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09-20-2021, 05:57 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,373
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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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09-20-2021, 06:31 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,596
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Quote:
Originally Posted by 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.
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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.
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09-20-2021, 07:11 AM
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#9
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Full time employment: Posting here.
Join Date: Jun 2018
Posts: 928
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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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09-20-2021, 07:49 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,596
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Quote:
Originally Posted by 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.
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I agree with a well sealed roof- Hot days are better for asphalt roofing.
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Retired May 13th(Friday) 2016 at age 61.
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09-20-2021, 10:49 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 16,973
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Quote:
Originally Posted by 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.
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Sounds like you decided on shingles and not a metal roof.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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