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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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