House in Kansas. Sold Oct 2010. Insurance claim on roof of $4,000 in 2010which was not used to repair the roof as part of sale. How is the $4,000 treated? Income?

“How is the $4,000 treated? Income?”---> Should you ever be required to cash in a claim from this insurance for damages to your property, the proceeds are generally not taxable to you. The IRS doesn’t know if you spend the proceeds to fix it. However, since you received an insurance payment, you must subtract the reimbursement when you figure your loss.