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do I have to claim my home owners insurance refund from my

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do I have to claim my home owners insurance refund from my house burning down to the IRS?
Welcome, THANK YOU for using Just Answer. My goal is to help make your life...a little...LESS taxing.

Sorry to hear about your home. The insurance reimbursement is taxable IF it exceeds the amount of the loss. Also, if you are planning to take a casualty loss on your tax return, the loss amount must be reduced by any salvage value and by the insurance amount that you rec'd.


As you lost your home in a fire, this considered a casualty loss, and the IRS allows a deduction for this. SEE BELOW:

A casualty loss can result from the damage, destruction or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake or even volcanic eruption. A casualty does not include normal wear and tear or progressive deterioration. Casualty and theft losses are reported on Form 4684 (PDF), Casualties and Thefts. Section A is used for personal-use property.

Link to Form 4684/instructions:

Please let me know if I can be of further assistance to you regarding this matter.

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Tax.appeal.168 and 4 other Tax Specialists are ready to help you

Thank you for the positive rating. For more detailed information regarding casualty losses, you can refer to IRS Topic 515.

Link to Topic 515:

Wishing you and yours a healthy, wealthy, and prosperous 2013.