The National Directory of Certified Public Accountants

Ask A CPA - Insurance

Is The Insurance Reimbursement For Excess Living Costs When The Fire Made Me Vacate My House Taxable?

The reimbursement is generally tax- free if you are paid under an insurance policy for living expenses resulting from the loss of occupancy or for a loss of use of your residence when your principal residence is destroyed or damaged by fire, storm or other casualty. Speak to your local CPA about the taxability of your reimbursement.

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