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I wrecked a car in 2016 that I had used for business and personal use. It was sold for 250 as scrap.

 
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DanielV01
Expert Alumni

I wrecked a car in 2016 that I had used for business and personal use. It was sold for 250 as scrap.

It depends.  Even if you did not use the vehicle for extensive business use, the loss of the vehicle is a "taxable event" (may not necessarily increase your tax) because the vehicle was used as a Business Asset.  If you suffered a loss on the vehicle, you may be able to claim the amount of loss proportionate to the business use.  TurboTax will calculate the original price minus depreciation claimed (even if you take the standard mileage rate, $.23/mile is for depreciation), and then subtract that total from the sales price.  If you scrapped the vehicle, the sales price is what you were given for it (even if it was very little).  An insurance adjustment payment would likewise count as a sales price.  

After this is calculated, a loss will decrease your income and lower your tax, whereas a gain of course is included in income and raises your tax.  Here is a consideration on sales (dispositions) of business assets:  https://ttlc.intuit.com/replies/5209540

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1 Reply
DanielV01
Expert Alumni

I wrecked a car in 2016 that I had used for business and personal use. It was sold for 250 as scrap.

It depends.  Even if you did not use the vehicle for extensive business use, the loss of the vehicle is a "taxable event" (may not necessarily increase your tax) because the vehicle was used as a Business Asset.  If you suffered a loss on the vehicle, you may be able to claim the amount of loss proportionate to the business use.  TurboTax will calculate the original price minus depreciation claimed (even if you take the standard mileage rate, $.23/mile is for depreciation), and then subtract that total from the sales price.  If you scrapped the vehicle, the sales price is what you were given for it (even if it was very little).  An insurance adjustment payment would likewise count as a sales price.  

After this is calculated, a loss will decrease your income and lower your tax, whereas a gain of course is included in income and raises your tax.  Here is a consideration on sales (dispositions) of business assets:  https://ttlc.intuit.com/replies/5209540

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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