Had some storm damage to a rental property. I am thinking I need to depreciate the repair as it is one that would normally be handled that way (a roof). But I am wondering if I can expensed it? As the insurance check is income so i would show a profit on the insurance claim tax wise.
Mon Apr 16, 2012 4:30 pm
coaster Senior Advisor
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Since the insurance payment is a one-time payment, it's income in the tax year received. Since the roof job is damage repair, it's a maintainance expense, not a capital improvement, am I right? I'm not a tax guy, and I don't have any income property, but in that case, the way I think it should be handled is as an expense incurred (and 100% accrued to) in the tax year paid, and since the insurance payment is income incurred (and 100% accrued to) the tax year in which paid, obviously, having both occur in the same tax year would be the best idea (unless you've got some other large one-time income you prefer to offset, though whether or not the insurance company cooperates is another question)
We have a member who's got rental properties; if he sees this and I'm wrong I hope he sets me straight.
~Tim~
Tue Apr 17, 2012 5:08 pm
AikenColin New Member
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Re: helloozz
Insurance Claims?
I was insured with a singapore listed insurance company before I got a heart attack and when I made my claims they told me I am not entitle to the claim I was told that I got my attack before the policy got approved what can I do although it is a small amout
