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Because a hurricane damaged their home, the Henri family must stay in a hotel for three weeks while their home is being repaired. During this
Because a hurricane damaged their home, the Henri family must stay in a hotel for three weeks while their home is being repaired. During this three week period the family pays $4,200 for the room and $1,900 for meals. Their homeowners policy pays $6,100 to reimburse the Henri family for the lodging and meals. The family estimates that it would usually pay approximately $1,300 for three weeks of meals (if they were living in their home). To what extent, if at all, is the reimbursement includable in gross income?
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