if fire insurance payment for replacement cost was less than their own estimated repair cost, are taxes on the settlement due? Even in the case of not being able to totally repair property.
Optional Information: Country relating to Question: United States State (if USA): Pennsylvania
Hello and thank you for the question. I am sorry to read of this dilemma. It is compensation for a loss and not full compensation. As such it is not income and accordingly no tax would be due.
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