How does my insurance claims impact my taxes?
Two of my rental properties received hail and wind damage during the summer. I need help answering an insurance/tax question for which I am getting varied responses from the ‘experts’. Both rental properties had a claim filed against them and received payout.
Property 1: Claim for $21,000 was paid out to fix/replace roof, guttering and siding. Roof and guttering were replaced for a total of $9,000. Siding will not be replaced until early spring due to back up of contractors and winter right around the corner.
Property 2: Claim for $5,000 was paid out to fix/replace roof and guttering. Roof and guttering were replaced for $4500. The amount was $500 less than the amount provided partly due to the fact I helped with the installation.
Question, how do these two claims impact my taxes for this calendar year? Thank you in advance!