Work Car Totaled

[Yelluca91]

I stopped using my car on July 14th, 2020 due to an off the clock car accident that resulted in my car being totaled.

I bought the car in 2018, and my car insurance paid off my loan and gave me a little over $2700 to help me buy a new car.

Do I file this vehicle on my taxes? How would I file this on my taxes?

What sell price do I put it as?

Do I go based off of the price the insurance paid to settle my loan?

They settled my loan for a little over $11,000.

Does this make sense?  Thank you.

[Mike9241]

if you are a w-2 employee, there is nothing to report.  post back if you took a business deduction (depreciation) for this vehicle - likely meaning you were self-employed.   

[Yelluca91]

Hey Mike,

So yes this was used with Uber Technologies, Inc. for food delivery. 

[ThomasM125]

You do need to report the sale on your tax return, since you used the auto for business.

To report it in TurboTax, you need to go to the business section and update your Business Income and Expenses. Find your Business Expenses and then update your Business Vehicle Expense and edit your vehicle. You will see an option that says I stopped using this vehicle in 2020, check that box and you will be asked to enter your sales information.

The sale amount is the payoff on your loan and the $2,700 left over. 

[patrickknaubert]

I have a very similar situation, except i paid 8500 for the vehicle, insurance gave me just over 5000, leaving me with just over 2000 to pay off. how does this change my sales price and expense of sale? 

[user17718123798]

And how does the deductible factor into it. Does that go in the follow up gain loss section?

[KrisD15]

The deductible doesn't really factor in besides the fact that it means you received that much less, you'll have a greater loss.

In other words:

If you have a vehicle with an adjusted basis of 10,000, and it was totaled and the insurance pays 7,000 you would have a 3,000 loss. 

If you have a vehicle with an adjusted basis of 10,000, and it was totaled but the insurance only pays 6,000 because you have a 1,000 deductible. You would now have a 4,000 loss. 

The deductible is in the loss. 

This is an old thread, if you are asking something a bit different, please continue the question with more details or start a new question. 

@user17718123798 

@patrickknaubert