If you stop using your car for business, you can
tell TurboTax that you disposed of the vehicle.
Note! You may not have to recognize a gain or loss if you dispose of the car because of a casualty, theft, or trade-in.
For a casualty or theft, a gain results when you receive insurance or other reimbursements that is more than your adjusted basis in your car. If you then spend all of the proceeds to acquire replacement property (a new car or repairs to the old car) within a specified period of time, you don’t recognize any gain. Your basis in the replacement property is its cost minus any gain that isn’t recognized.
