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Tax Law (Questions About Taxes)/Deduction for home repair



I had an incident with my home builder last year where there were construction issues with my property wall. I proved the issues, got an estimate from a contractor to resolve them, and the builder agreed to pay the cost of the job, which they wrote as a check to me. I cashed this check in December, and I'm not giving that amount (and more) to the contractor for the work. However, the builder sent me a MISC income statement for the full amount.

I do not count this as income, as it's going in and right back out to the contractor. How would I go about writing off this amount in my taxes?

casualty loss.  shows up on schedule a

loss 100 for wall damage

builder paid x for repairs

you paid x (+ Y more) to new builder to fix.

result is net loss = you get deduction.  result is net "win" you adjust basis for future gain/loss on original purchase price.  

do you do your own tax?  I would put the misc income on misc other income on page one, line 21 and include the payor ein number (how did he get your social security number?)

and then make next line a minus of the same amount and indicate it was reimbursement for casualty loss.

if you need help, let me know I'd be happy to actually do your return (yes, for a fee, but I am way better than turd-oh tax)


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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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