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arkvalleyinfo
December 11, 2018
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How do I record a Property Insurance Claim?

  • December 11, 2018
  • 2 replies
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I received an insurance payment for a roof claim on two of my rental properties. Should I deposit the check in the same EXPENSE category listed below. Or do I need to make an income category for Insurance Claims? Does it matter. I have 2 roofs. One I am going to repair and the other I am not.

EXPENSE
 Insurance:
   Property Insurance:

Thank you in advance for taking the time to help me.

Best answer by Rustler

@ greg

I would book the insurance payment as income, split between both properties, and I would create an insurance income account for that purpose

Repairs to a roof do not impact on the fixed asset at all, a roof replacement does and is a new fixed asset account

if you repair a roof, then that is an expense for that property obviously

2 replies

Rustler
RustlerAnswer
December 11, 2018

@ greg

I would book the insurance payment as income, split between both properties, and I would create an insurance income account for that purpose

Repairs to a roof do not impact on the fixed asset at all, a roof replacement does and is a new fixed asset account

if you repair a roof, then that is an expense for that property obviously

    A
    arkvalleyinfoAuthor
    December 11, 2018
    That sounds like the best method. Thanks for your response.
    C
    Corae
    December 11, 2018

    You need to ask your tax professional about this.

    A
    arkvalleyinfoAuthor
    December 11, 2018
    Why? Keeping my accounting books are for more than just taxes. I use them for Managerial Accounting the most, Financial Accounting occasionally, and tax accounting once per year. What my accountant does with it, I'm not concerned. Thank You for your response but it wasn't very helpful.
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