Vehicle used for rideshare was totaled by insurance mid year, confused on how to input that under the vehicle section in my deductions

Forum|Forum|3 months ago
April 8, 2026
1 reply
159 views

I'm a full time rideshare driver, I financed a used 2019 Chevy on 7/11/2023 with 31k miles and put in service on 7/12/2023. I claimed standard mileage on my 2023 & 2024 taxes. 5/30/2025 with 105k miles the Chevy was caught in high water during a monsoon of a rain storm and insurance deemed it a total loss.

The sticker price was $21,434 but total financed amount was $30,278. Personal auto insurance paid $11,423 ACV directly to the finance company and GAP Insurance paid the balance of $9,566 on the loan directly to the finance company.

I have not replaced the vehicle yet, rather renting week to week from a company that rents for rideshare workers. I'm confused on how to proceed with filing as the only options I have to choose from are :

- Started using as personal vehicle 100% of time

- Percentage of business use varied over the years

- Gave it away as a gift

- None of theses

I don't know how to determine sale price when all the money paid by insurance went directly to the finance company and the vehicle went to a salvage auction when the insurance company took possession of it.

Total mileage use of vehicle for business purposes was 94% over the three tax years

- 2023 92.5%

- 2024 90%

- 2025 93.5%

TurboTax Business Windows

AmeliesUncle

Level 15

I can't guide you through everything, but I'll start off with a few thoughts:

TurboTax does not deal with items that vary in business percentage, so you'll need to need to manually do some calculations.
It looks like your total purchase price was $21,434 and your total sales price was $11,423.
Those numbers will need to be manually split between personal and business, as well as you'll need to manually calculate the depreciation portion of the Standard Mileage Rate.
If you plan on purchasing a new vehicle to replace it, in your specific case I strongly suggest an "Involuntary Conversion" is what you want to do. I am unsure if TurboTax handles that, or if it does, how to do it. This can potentially avoid a lot of tax.
If you don't plan on replacing the vehicle, or if you don't make the Involuntary Conversion election, you'll be adding about $10,000 of income to your tax return.

FlippyAuthor

Level 2

For now I am renting while I can save up a down payment for a replacement vehicle as all of the insurance payments were sent straight to the loan company.