Insurance reimbursement

[gman]

Farmer had some motor damage to tractor. Insurance reimbursed farmer with a check directly to farmer and the farmer wrote checks for the repairs. Would the insurance payment recieved be included on Sch F. Farmer has the expenses he made payments for listed under repairs.

thanks

[thomtax]

I haven't researched this for any quirks, but if no 1099 issued, I would use it as a reduction of the repair expense, which is what it really was. And, of course, that is the reason for having insurance - to help offset any bills you accrue that may fall under the coverage plan.

LT

[taxea]

Farmer had some motor damage to tractor. Insurance reimbursed farmer with a check directly to farmer and the farmer wrote checks for the repairs. Would the insurance payment recieved be included on Sch F. Farmer has the expenses he made payments for listed under repairs.

thanks

Either reduce the expense claimed by the reimbursement before input on the return or as above show the total expense and adjust it by the insurance reimbursement amount.