How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I had a house that was samaged in a hurricane. The insurance

Resolved Question:

I had a house that was samaged in a hurricane. The insurance claimed it as a total loss. Do I have to report this to the IRS?
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

Yes - these money should be reported - that doesn't mean the total proceed is taxable.


Generally - you need to identify the fair market value of the house before it was damaged and the fair market value of the house after it was damaged. It the property was a total loss - that value would be zero.

The difference would be your casualty loss.

If the amount of insurance compensation is less than your casualty loss - you may claim a deduction for the difference.

If - however - the amount is more than your casualty loss - the difference is your gain and it is taxable.


You may find more details in the IRS publication 547 -

Let me know if any clarification is needed.


Lev and other Tax Specialists are ready to help you