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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53705
Experience:  29 years of experience as a tax, real estate, and business attorney.
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We had a total loss house fire. We received a large payment

Customer Question

We had a total loss house fire. We received a large payment from our insurance company for this loss. Do I need to report this on our tax return? If so, how?
Submitted: 5 years ago.
Category: Tax
Expert:  Richard replied 5 years ago.

Good morning. No, the payment is not taxable to you because it did not involve any net increase to your net was simply a reimbursement of the damages you suffered in your fire and thus it is not income and need not be reported.



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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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