Taxes on homeowners insurance money?
My house burned down in 2021. The insurance company paid out 200,000.00. I gave my son 50,000 for him to buy a house. And I got a separate house with a 40,000 down payment. Question: Do I have to declare any of this on my taxes for 2021
Terry Says
No. Your homeowner’s insurance payout is not taxable if it was for your personal residence. And if you sold your old property the first $250,000 of gains was tax free since it was your residence. And you can give your son the money ( and he can receive it) without tax consequences. So I hope both of you enjoy your new homes!!