I gifted my car to my daughter a few years ago, and in 2021 she used it partially for business. She drove for a total of 3000 miles (500 miles for business 16.67%) and received a business expense deduction of $280. In May of 2022, the car was in an accident and totaled; she received a check for $9,856 from her insurance company.
Under sales price, I entered 1,643 “business portion” ($9,856 times 16.67%). I left blank the boxes for Vehicle cost and Basis for gain/loss. Now it shows that she has a gain of $1,643. Is that right? She took a $280 deduction last year and now has a gain of $1,643? In retrospect, would it have been better not to have partially used the car for business?
