Client company vehicle was damage by snow. The insurance company issued a cheque to repair the vehicle. Is the insurance proceeds considered income? Do any one know of literature I can read up on.

Yes - the proceeds should offset the repair expense. If the expense was less than the insurance proceeds, the net difference will increase taxable income. If the expense was more than the insurance proceeds, the net difference will reduce taxable income.

@Nezzer I agree with you. The client is asking for some sort of document or literature that states that.

Give him a copy of the ITA - i’ts probably somewhere in sections 56-59. But, you’re the tax expert who studied this stuff - not him. If he doesn’t trust you, I’d tell him to take his business elsewhere.

Is general principle not enough? If the insurance premiums are deducted from income then you should expect - barring specific provisions otherwise (such as those related to life insurance or replacement properties)- any proceeds from it to be added to income.

I would think that paragraph 12(1)(f) would pretty much nail that down. Income inclusions 12 (1) There shall be included in computing the income of a taxpayer for a taxation year as income from a business or property such of the following amounts as are applicable Insurance proceeds expended (f…

Could you not just Google “accounting for insurance proceeds on property, plant, & equipment?”

won’t be as interesting as seeing the answers in this posting D&D Professional Services Dara Dallyn 780 819 9486

I agree with all that it should be included in income if proceeds exceed the cost of repairs. But this is not the client’s vehicle. It’s the company’s vehicle, so wouldn’t the company receive the cheque from insurance, not the client? If the employer gives the employee the insurance proceeds to hav…

Insurance proceeds to repair damage vehicle

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Insurance proceeds to repair damage vehicle

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