Reimbursement of Oil Spil

[PauerHaus]

Taxpayer received a 1099-Misc. from the State of Nevada for other income representing reimbursement for cleaning up an oil spill (from heating oil tank leak) at his personal residence.

The reimbursement came from a State Underground Storage Tank (UST) Fund.

The reimbursement comes to the taxpayer who then pays the contractor. I will have to report the income, ($40k) but is there a deduction to offset?

Thanks for any input

[Terry53029 · Accepted solution]

found this on internet, here is link: https://ndep.nv.gov/environmental-cleanup/petroleum-fund/forms

Tax Documentation for Fund Reimbursements

Nevada operators that had a petroleum release from their storage tank and have received reimbursement claim payment(s) from the Nevada Petroleum Fund may receive tax form 1099-MISC from the State of Nevada Controller’s office. The Board to Review Claims and NDEP have received a determination from the US Department of Agriculture, Natural Resources Conservation Service that Fund reimbursement payments (i.e. cost-share payments) may be eligible for exclusion from an operator’s reported gross income under Section 126 of the Internal Revenue Code of 1954, as amended. If you have received tax form 1099-MISC for the current tax year, download the below Record of Decision to submit to your tax professional along with claim payment documents received from NDEP.

[PauerHaus]

Thank you so much!