Insurance refund after rental was dispositioned

[RickHess]

Client sold several rental properties in 2019.  On some properties his insurance was paid and reported on 2018 Sch E.  On other properties his insurance was paid in 2019.  On all properties he received a prorated refund of insurance in 2019.  Do the refunds need to be reported, and if so, where?  Since the refunds were received after the date of disposition, I wouldn't think they would be reported on Sch E.

[sjrcpa]

If you get a refund of a previously deducted item, it is taxable to the extent you received a tax benefit for the deduction. I would put the refunds on Sch E.

[BobKamman · Accepted solution]

Paid in 2019 and refunded in 2019 -- deduct net amount on Schedule E.

Paid in 2018 and refunded in 2019 -- that's a good question, since it might affect the QBI deduction for either or both years, right?  I would probably add it to rental income for that property.  Otherwise there's always Line 8 of Schedule 1.