I received a insurance claim check in the amt of 40K I have an additional 5K in recov. depreciation.?

Question

I received quotes from several contractors and the are all in the 25K range. So there will be about 15K left over after the damage is fixed can I keep the 15 K and not go after the 5K in revoverable depreciation?

Answer 1

Sure, but I wouldn't spend it.  I'd bet you dollars to donuts those contractors are lowballing you, and it's going to be pretty close to $40K in the end.  

Also, don't pay any of them up front!  Don't sign off that the work is done, until it's done!!!

Answer 2

How did this damage happen?   Was this from a storm?  Anything you replace from this damage can be depreciated.  In your prior years of depreciation is carried over.