Do I have to pay taxes on money I received for an auto insurance claim?

Forum|Forum|7 years ago
June 1, 2019
2 replies
3 views

My car was struck by lightning. The insurance company totaled it. Do I have to pay taxes on the money I received from my insurance company?

TurboTax Free Edition Online

Anonymous

Unless the insurance company paid you more than the vehicle's fair market value (not what you owed), then the payment is not taxable or reportable on your return. As a rule, they do not pay more than the FMV.

If they paid you less than the vehicle's fair market value, you may be able to claim a casualty loss deduction.

https://ttlc.intuit.com/replies/3301959

AnaAnna

Level 2

Does anything change if the bonus depreciation method was written on this car in the previous year? Should I return some of the money to the IRS?

DaveF1006

Level 15

To clarify, was your vehicle a business vehicle?

@AnaAnna

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Do I have to pay taxes on money I received for an auto insurance claim?

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