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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13116
Experience:  15years with H & R Block. Divisional leader, Instructor
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I had an insurance claim in 2013 flood in my home.

Customer Question

I had an insurance claim in 2013 for a flood in my home. They paid $15,000 and I have yet to make the major repairs. I called the insurance company and they said that the proceeds were tax free and I did not need to spend them to make repairs. They also said that the figures were accurate in the damage and cost to fix. I have a basis in my house of over $600,000. Can you confirm that I do not owe anything as a gain. I will do the repairs eventually, but I have passed the two year deadline. Can you concur I do not owe a capital gain on any of the proceeds? Plus, why would the insurance company pay any more than the actual damage? Thanks so much.
Submitted: 6 months ago.
Category: Tax
Expert:  Robin D. replied 6 months ago.
HelloIf the amount you receive in insurance or other reimbursement is more than the cost or other basis of the property, you have a gain. You have no gain on this and the proceeds are not taxable.As long as you did not claim a casualty loss on this and deduct on your taxes you are fine.You are required to click a positive rating if I am to be credited with the response.You have to actively click on a rating and click submit. Smiley Faces or Stars.
Expert:  Robin D. replied 6 months ago.
Checking to see if you responded