What about if you still had a loan balance on the car that was totaled? My car was deemed "totaled" and I received a settlement from the party-at-fault's insurance company. I took the settlement and payed the remaining loan amount which left me a little less than 1/4 of the total settle amount. I then took that 1/4 and bought a used car for my business. How do I report that ?
It seems that TT is taking the entire insurance payout as income. Do I only report the 1/4 amount since I didn't realize the entire payoff b/c I owed money to the bank?
