The car I was deducting for business since 2004, was in an accident and a total loss early in 2021. How do I report this?

[gord1237]

I no longer own the car since the insurance company bought it at fair market value minus my $1000 deduction.

[Mike9241 · Accepted solution]

was a portion of the car for personal use? if not 100% generally you must split the cost between business and personal using the total business mileage to total mileage 

if there was personal use you have two computations

the business portion

business portion of cost less business portion of depreciation (even if you used the standard mileage method there is a depreciation factor included which you must take into a/c. see IRS pub 463) = your tax basis

business portion of insurance less business tax basis is your business gain or loss

the personal portion

you have a capital gain if the personal portion of insurance exceeds the personal portion of the cost, otherwise, you have a nondeductible loss on the personal portion

[gord1237]

Thank you, Mike9241.  I still don't completely understand the ramifications of your answer.  I used the car for both business and personal mileage.  I am using the Home & Business version of TurboTax and have carried over the details of my use every year in TurboTax.  I don't understand how the total loss of my car becomes

a tax cost for business and a non-deductible loss for personal.