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Old 02-23-2015, 01:49 PM
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Insurance claim paid on fire. How does IRS know?

I received funds from an insurance claim for a fire at my rental. I did receive a 1099 misc for a portion of the rent. How would the IRS know if I did not claim the loss or in this case the income from the insurance company? As the insurance funds received was more than the repairs. I would obviously prefer not to pay taxes on the additional funds.



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Old 02-23-2015, 08:21 PM
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I received funds from an insurance claim for a fire at my rental. I did receive a 1099 misc for a portion of the rent. How would the IRS know if I did not claim the loss or in this case the income from the insurance company? =======>>>>>>>>>>even if you do not claim the loss, irs knows that you received it as the payer sends a copy of 1099/1096 to irs by mar 31 2015. The IRS matches nearly all 1099s against your 1040Actually, the fact that you received the 1099-Misc does not mean that this your taxable gain! Generally speaking, if you receive an insurance payment or other reimbursement that is more than your adjusted basis in the destroyed, damaged, or stolen rental property, you have a gain from the casualty or theft.

As the insurance funds received was more than the repairs. I would obviously prefer not to pay taxes on the additional funds.=======>>>>>>>>>>>>>>>>>>>then it’d be taxable;



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