I'm wondering whether any part of the settlement I receive on my car that is being handled sort of as lemon law by the manufacturer.
I get to keep the car.
$30,000 My purchase price (I bought it used)
$20,000 Current value - IF it was in good condition
$15,000 Approximate current value because there are lots of problems
$10,000 settlement offered by manufacturer (and I get to keep the car)
I deduct 50% as business use of the car on my tax return
1) If it is taxable, how much would be taxable?
2) And would I pay tax this year, or would I wait until I sell the car to see what it sells for at that time?
