Quote:
Originally Posted by datigood1 I received a 1099 Misc made out to a Contractor and myself from my Mortgage company. The Contractor's ID # is in the Recipients ID # box. The Contractor repaired my roof due to hail damage. When the Insurance Company issued a check for the claim it was made out to the Mortgage Company and myself and I signed it over to the Mortgage Company. Then when the work was completed the Mortgage Company issued a check to the Contractor and myself. Again, I signed the check over to the Contractor. I did not receive any of the money. It all went to the Contractor for the repair. Do I need to file this 1099 Misc on my taxes? |
you need to report the amount on your tax return as income but you will also list the cost of the roof repair as a write off against that income. In the end it will not affect the amount of taxes you owe at all. Actually, the fact that you received the 1099-Misc does not mean that it is taxable; if you receive an insurance payment or other reimbursement that is more than your adjusted basis in the destroyed, damaged, or stolen property, you have a gain from the casualty or theft. Your taxable gain is;The amount the insurance reimbursement you receive minus
loss sustained on the damaged roof.Now if you show a loss, you are required to reduce the loss by any reimbursement and by $100 for tax year 2014. Then you need to reduce the total of your losses by 10% of your 2014 AGI.