CharlesM7 (Texas)
Posts: 1
Posts: 1
Posted:
I'm president of a small condominium assosication. We are getting ready to file Form 1120H in the next month. In the last year, we received a flood insurance reimbursement for repairs and clean-up to some of our building's common areas as well as damage to the building's elevator and mechanical room. This happened after heavy rains caused the small river adjoining our property to overflow its banks in a flash flood.
How should the insurance reimbursement be treated on Form 1120H? Our bookkeeper has sought out and received many different answers. All the money from the reimbursement was used for repairs except for approximately $1500. Is the entire insurance reimbursement amount to be treated as exempt function income or should it be included in gross income?
Thanks in advance for anyone that can shed any light on how to treat this money on Form 1120H?
How should the insurance reimbursement be treated on Form 1120H? Our bookkeeper has sought out and received many different answers. All the money from the reimbursement was used for repairs except for approximately $1500. Is the entire insurance reimbursement amount to be treated as exempt function income or should it be included in gross income?
Thanks in advance for anyone that can shed any light on how to treat this money on Form 1120H?