How do I file taxes on SIGNIFICANT home damage?
Hi everyone!
I'm trying to figure out the best way to approach my taxes this year, as it was a bit of an unusual year for our house. Here is the situation...
-Ran an airbnb in our basement from Dec. '21 to June '22
-In July '22 a drunk driver in an F350 crashed into our home, causing massive damage (~$150k worth)
-All home repairs and renovations were covered by homeowner's insurance, and we were compensated for lost Airbnb revenue also
-We didn't move back into the home, electing to move into an apartment in October and listing our entire home as an Airbnb now that it is fully repaired and measures have been taken to ensure an accident like this doesn't happen again
What I'm trying to figure out is, with all this money coming and going through USAA, my homeowner's insurance, what implications does this have on my own tax filings, as well as my Airbnb tax filings? I'm not sure there's a straight-line answer to this, so hoping some of you tax-savvy folks could guide me in the right direction.
Thank you!