I had a vehicle which I used for business that was totaled. I owed 13k on it at the time. The insurance company paid only 8k and this was paid directly to the loan company. So I still owed 5k. In past years, I had claimed the standard mileage deduction which depreciated the vehicle *below* the actual sale price. Does this now count as taxable income even though I did not receive the payment directly (the loan company did)?
