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Good day
Would anybody be kind enough to explain to me how a short term insurance payout should be processed / accounted for by an individual please?
Is it correct to assume that this person would not include this payment as income in their provisional tax calculations?
The insurance premiums have been paid monthly to the insurer over a period of years. The payout is in lieu of storm damage to the person's home and this is the only claim against their policy through the years.
The property has a cottage that generates some rental income which the owner includes in their tax calculations, but I assume that this is not actually relevant to the insurance claim receipt scenario?
Thanks in advance for any guidance and logic to apply.
Lindsay
Would anybody be kind enough to explain to me how a short term insurance payout should be processed / accounted for by an individual please?
Is it correct to assume that this person would not include this payment as income in their provisional tax calculations?
The insurance premiums have been paid monthly to the insurer over a period of years. The payout is in lieu of storm damage to the person's home and this is the only claim against their policy through the years.
The property has a cottage that generates some rental income which the owner includes in their tax calculations, but I assume that this is not actually relevant to the insurance claim receipt scenario?
Thanks in advance for any guidance and logic to apply.
Lindsay