<dmwhite1[at]excite.com> wrote:

- quote -

NO, Insurance proceeds from hazard insurance are rarely taxable.

I suggest you start a thread about this at alt.home.repair.
I have always gotten excellent advice there.

Dick

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<dmwhite1[at]excite.com> wrote in message
news:c324b365-657b-4979-86bd-dd35815882b2[at]z19g2000vbz.googlegroups.com...
- quote -

To me, it sounds as if you overpaid your mortgage, so no, it's not taxable
but merely a return of your overpayment (that you could not deduct).

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We have sinkhole activity on our property. The repair cost estimates
were for more than we were insured for and more than we owed on our
mortgage so the insurance company sent us a check for our limit and
said we had the option to try and get it fixed or pay off our
mortgage. We sent the check to the mortgage company and opted for the
pay off. They in return sent us the difference after the mortgage was
paid off and told us it was up to us if we wanted to try and get the
areas fixed now with the difference and out of our own pocket if we so
chose. Is this considered taxable income?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >