Originally Posted by datigood1
I received a 1099 Misc made out to a Contractor and myself from my Mortgage company. The Contractor's ID # is in the Recipients ID # box. The Contractor repaired my roof due to hail damage. When the Insurance Company issued a check for the claim it was made out to the Mortgage Company and myself and I signed it over to the Mortgage Company. Then when the work was completed the Mortgage Company issued a check to the Contractor and myself. Again, I signed the check over to the Contractor. I did not receive any of the money. It all went to the Contractor for the repair. Do I need to file this 1099 Misc on my taxes?
you need to report the amount on your tax return as income but you will also list the cost of the roof repair as a write off against that income. In the end it will not affect the amount of taxes you owe at all. Actually, the fact that you received the 1099-Misc does not mean that it is taxable; if you receive an insurance payment or other reimbursement that is more than your adjusted basis in the destroyed, damaged, or stolen property, you have a gain from the casualty or theft. Your taxable gain is;The amount the insurance reimbursement you receive minus
loss sustained on the damaged roof.Now if you show a loss, you are required to reduce the loss by any reimbursement and by $100 for tax year 2014. Then you need to reduce the total of your losses by 10% of your 2014 AGI.