As a result of an earthquake damaging their home to what


Question - As a result of an earthquake damaging their home, the Gregory family must stay in a hotel for three weeks while their home is being restored. They pay $4,200 for the room and $1,900 for meals. Their homeowner's policy pays $6,100 to reimburse the Gregory family for the lodging and meals. The family estimates that it would ordinarily pay approximately $1,300 for three weeks of meals. To what extent, if at all, is the reimbursement includable in gross income?

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Accounting Basics: As a result of an earthquake damaging their home to what
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