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A taxpayer and their family lose their home in a wildfire, and their insurance company puts them up in a hotel for a few weeks,

A taxpayer and their family lose their home in a wildfire, and their insurance company puts them up in a hotel for a few weeks, along with an additional stipend for covering food and certain other living costs. When they receive their later settlement for their lost house, it's less than the value of the house that they lost. How much of the amounts are they likely going to have to include in income?

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