I've had insurance payouts for damaged driveways and carpets after the Christchurch Earthquakes. The money won't be spent on repairs for a few years. My accountant said the payout is income for tax purposes (about $20,000) and will be claimed as an expense when repairs are done later. But IR264 says under Damaged assets "If you receive an insurance payout to repair a damaged asset, you don’t include it as income and you can’t claim the cost of the repairs which are covered by the insurance".
Has anyone got an answer on whether this is income or not?
Thanks
Ben
Has anyone got an answer on whether this is income or not?
Thanks
Ben
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