Vanessa A
Expert Alumni

Deductions & credits

Yes, you will add your car as a vehicle expense when entering your 1099.  However, be sure you read the questions and enter the insurance reimbursement as the amount it was sold for.  You must report the amount that you received from insurance even though you used it to pay off the loan.  

 

The loan amount (plus any cash you paid or vehicle you traded in) would be the cost of the vehicle. 

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