Car Stolen Prior to C7 Filing!!!

[Dollar Bill]

Unfortunately my car went missing on monday, and is declared stolen today.

If I am reimbursed by my ins. co. Will that count as income?

Will I then need to adjust my scedules before filing?

[HHM]

Good question. I am not sure that insurance proceeds that result from a "loss" would be counted as income. Granted, the proceeds are cash in the door, but those proceeds do not increase your net worth.

Sometimes buried in a states exemption scheme (not necessarily in the exemption statute, but in the insurance law area of you state code), there may be an exemption for this type of income.

What you need to do is take the money and buy another car ASAP.

[Dollar Bill]

Thanks HHM....That may be the plan depending on what exeption we take. More than likely it will be system II so that we can actually have a littl money in the bank.