home damage insurance claim

[Maria Iano]

This is the approach I will go with for exactly that reason of  
avoiding it being income. Thank you both for getting back to me with  
your solutions.

Maria

On Apr 14, 2012, at 10:20 AM, Mike C. wrote:

> I had a similar situation and handled it by creating an expense  
> account
> and a liability account.  The funds I received from insurance were
> credited to the liability account and debited to the checking account.
> Some insurance reimbursements were received before the repairs were
> started.  When I paid for the repairs I debited the liability and
> credited  the checking account to the extent there were funds in the
> liability account.  When there are no remaining funds in the insurance
> reimbursement liability account, then when I paid for a repair I  
> debited
> the expense account and credited the checking account.  In this manner
> the expenses are only what you really paid for and there is no income
> which is the case when it comes to tax time.
> Just another way of handling it.
> Mike
>
> On 4/12/2012 11:55 PM, Paula Hendricks wrote:
>> i do this all the time with specific jobs and reimbursable  
>> expenses: i create an income account (called whatever, say Income:  
>> window repair) and then i create an expense account (Expense:  
>> window repair)... then i track the monies that way,,, coming in and  
>> going out... and then in the notes section of the transaction  
>> window i can be more specific... and you can have sub-accounts if  
>> needed, like for the window itself or the furniture. depending on  
>> how many layers of information are truly needed/ helpful.
>>
>> i hope this helps
>>
>> 	ph
>>
>> ~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~
>> paula hendricks ~:~ cinnabar bridge communications
>> writing ~:~ photography ~:~ book design
>> san francisco ~:~ 415.975.0950
>>
>> On Apr 12, 2012, at 8:13 PM, Maria Iano wrote:
>>
>>> We had a water leak causing damage to our home and I am wondering  
>>> how best to track the expenses and insurance claims.
>>>
>>> Our insurance company gave us 2 checks so far, one for contents  
>>> and one for repairs. We have a provision to replace as new. What  
>>> that means is that initially the insurance company gives us a  
>>> check for the replacement/repair cost minus depreciation. After we  
>>> provide receipts showing we replaced the item or did the repair  
>>> they then give us a check for the depreciation they previously  
>>> subtracted. We don't have to do the repair or replacement, and  
>>> they are happy for us to take the check minus depreciation in that  
>>> case.
>>>
>>> We have a $1000 deductible. I actually paid that to the mitigation  
>>> company directly. The mitigation company sent the rest of the bill  
>>> to the insurance company so I never saw that and therefore feel I  
>>> don't need to track it. There are some other bills going directly  
>>> to the insurance company as well, and I'm currently planning to  
>>> ignore those as well.
>>>
>>> Meanwhile, how do I record the checks I have received so far? As I  
>>> pay contractors for the repairs and buy replacement furniture, how  
>>> do I record those? The $1000 deductible I recorded as coming from  
>>> my credit card to an expense I set up specifically for this flood.  
>>> But I wonder should the repairs be deducted from the value of the  
>>> house and then replaced as they are done? I'm confused as to how  
>>> to track all of these transactions.
>>>
>>> Thanks for any help you can give,
>>> Maria
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