Insurance reimbursement and repairs not made

[bwcpa]

Hello,

My client received a insurance reimbursement for hail damage to the roof of a storage facility. The adjusted basis in the building is more than the what the insurance reimbursement were. My client does not want to make the repairs to the roof as he feels it is just cosmetic and feels he will just get less for the facility when he sells it.

Would I just reduce the adjusted basis by the amount of the insurance reimbursement or would it be taxable?

Thank you