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Are proceeds from insurance claim taxable to a business?
My business suffered damages from a hurracane and I received proceeds for food, repairs and down time from an insurance claim, are those proceeds taxable to my business?
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Tax Professional Answers
Any reimbursement for damage to your property is not taxable to the extent it was used to repair the property. If it was a total loss, if the reimbursement exceeded your basis and was not reinvested comparable property, a portion would be taxable. Payments for food, lost profits, and the like are taxable income. With limited information, I cannot give you a complete answer. I would suggest consulting a local CPA or other tax preparer to be certain this matter is properly accounted for on your tax return.Leave a Comment 73 weeks ago