Insurance claim

[Andy]

I made a small claim on my house insurance for some damage to paint on
interior walls of my house following heavy rain. I got a quote ($585) from a
painter and sent it to my insurance company.

The insurance company sent me a cheque for $485 (I pay the first $100 ) made
out to the painter, and with my name printed underneath. I paid the cheque
into my bank account.

I rang the painter but he said that he couldn't do the work for about 3
months so I ended up buying the paint and doing the job myself.
The painter now tells me that if he gets audited by the tax man I could end
up in trouble.
Is this true?

Andy

[Rod Speed]

Andy <an...@netspace.net.au> wrote in message news:7idtrt$2v9a$1...@otis.netspace.net.au...

Nope. You are welcome to do what you did.

The worst that might happen is that the tax dept trys to play silly buggers
on some purported 'income', the difference between what the insurance
company paid you and the cost of the paint. Extremely unlikely indeed.

[Martin Taylor]

Andy said..

An> I rang the painter but he said that he couldn't do the work for about
An> 3 months so I ended up buying the paint and doing the job myself.
An> The painter now tells me that if he gets audited by the tax man I
An> could end up in trouble.

In trouble with whom? It's not income, but money used to effect repairs
under an insurance policy. I s'pose the insurance company might have a
word to say about it if they paid it based on the quote. A part of the
quote was for labor, which then I s'pose forms part of the painter's
income. In any case, if he hasn't got the job, why should he be audited
and it then be traced back to you?

.. Junk is something you throw away three weeks before you need it.

MJT

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Gippsland, Victoria, Australia