This guide helps property owners and managers understand how Roam’s loss-of-income coverage affects their taxes.

📌 Overview

• Premiums for Roam are generally deductible as a business insurance expense.
• Payouts that replace lost booking revenue are generally taxable income.
• Always confirm details with a qualified accountant.

✅ Checklist for Your Accountant

💰 Premiums

• [ ] Is the Roam premium deductible as a business expense?
• [ ] How should I categorize the premium in my books (e.g., “Insurance Expense” vs. “Management Fees”)?

📥 Claim Payouts

• [ ] Are payouts from Roam taxable income since they replace lost booking revenue?
• [ ] How should I categorize the claims in my books?
• [ ] Will I receive a 1099-MISC (or similar form) for Roam claims payouts, and how do I reconcile it with my own records?

🗂 Recordkeeping & Timing

• [ ] Do I deduct the Roam premium in the year I pay it or the year it applies to (cash vs. accrual basis)?
• [ ] What documentation should I keep (e.g., invoices, statements, claim summaries) for taxes or audits?