Request for Guidance on Categorizing Insurance Payments

[Carlos Brito]

Hi,

Last year, my apartment was unfortunately flooded, resulting in significant damage. My insurance company handled the situation by splitting the recovery process into two distinct parts: the mitigation phase, which involved immediate repairs and damage control, and the rebuilding phase, where the actual restoration of my apartment took place.

In addition to these expenses, I also received a rental reimbursement from my insurance policy, but that payment was only deposited this year, long after the initial damage occurred.

I am seeking advice on how to categorize these various transactions in my property report. Should they be classified as income, insurance refunds,Insurance proceeds or perhaps some other category? Moreover, how should I account for these transactions when I file my taxes later this year? I typically use TurboTax for my tax preparation.

Any insights or suggestions you can provide would be greatly appreciated.

Thank you for your assistance!