From: "AllEmailDeletedImmediately" 
Newsgroups: misc.consumers.house
Subject: Re: the irs on gains from casualty and theft
Date: Mon, 18 Apr 2005 19:55:21 GMT


"Doug Miller"  wrote in message
news:TQQ8e.1082$xe3.178@newssvr31.news.prodigy.com...
> In article ,
"AllEmailDeletedImmediately"  wrote:
> >i had a reason to speak with the irs this morning.   while there, i
> >confirmed that you can, indeed, have a gain on insurance money paid for a
> >loss to personal property (as opposed to rental property you own).
> >
> >and yes, you can have a gain on a car insurance check (my reason for
calling
> >was a theft).
>
> Yes, of course you can, if the amount of the insurance payment exceeds the
> value of the loss. In that case, the difference is taxable income. If the
> value of the loss is more than the insurance payment, then the difference
is a
> tax-deductible casualty loss. If they're the same, there's no income.

the irs guy told me that the only way the guy with the burned down garage
can defer declariing a gain on the insurance check
is to rebuild the garage.   he didn't.