Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: Cptbutton Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121590  
Subject: How to handle ins refund - rental property Date: 2/17/2013 9:57 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I have a question about a refunded insurance premium on my rental property.

In November 2012 I paid my insurance (fire, liability, etc.) for a year, $1400.

In January 2013 they told me they are canceling my policy because of the condition of my property is not up to their standards. They will send me an appropriate premium refund, let's say $900 for discussion here. The refund will be paid in 2013.

I have gotten insurance from another company for $3000. I paid this in February 2013.

How much do I report on Schedule E for 2012 and 2013? I have looked in the instructions for Schedule E, Publication 537, and Publication 535. I don't see this addressed directly.

Do I report the premium refund as income, or do I reduce the amount I report on line 9 of Schedule E? And for which year?

I can think of 3 possibilities:

1) 2012: $1400 on line 9
2013: $3000 on line 9, list $900 as income (line 3 Rental or line 4 Royalties?)

2) 2012: $500 on line 9 ($1400 - $900 premium refund)
2013: $3000 on line 9

3) 2012: $1400 on line 9
2013: $2100 on line 9 ($3000 – $900 premium refund)

Which one is right, does anyone know? Or there a 4th choice?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement