In an accident my kitchen was burned and the home insurance issued me a reimbursement, is it taxable ?

Question

If you can provide a source that would be awesome!!

Answer 1

If your reimbursement is higher than your loss then the part that is higher is taxable.

Check out the link below and on the first page it talks about gains on reimbursements.

Answer 2

It depends,
How much was your loss(basis)?
How much was the reimbursement from insurance?
do you have a realized gain? (if reimbursement > Basis in the kitchen)
Did you spend all of the the reimbursement on replacing the kitchen?

if you have a gain from the reimbursement, but you spend all the money from insurance on the replacement of the kitchen, then it is not taxable.

but if you did not spend all the reimbursed money and you had a realized gain you must recognized the amount of realized gain or amount left over which ever is smaller.

Answer 3

A portion could be subject to tax if you had taken a casualty loss on the fire damage in a prior tax year.

Answer 4

No. Insurance proceeds for damage to your property aren't taxable.