If you used the car in your Schedule C business, then you would report the car as an Asset on Schedule C and report its disposition. Your gain or loss on the vehicle is the excess of the sale price or insurance proceeds over your adjusted basis, which is the cost of the car less any depreciation taken.
If this was a personal vehicle only, you would not be able to deduct any loss on the disposition. Casualty loss deductions are also no longer available for nonbusiness property unless they are related to a Federally declared disaster.
See IRS Topic 515 for more information on casualty losses.
See this TurboTax tips article for more information on Schedule C income and deductions.
See also this thread and this one for more discussion of the issue of reporting a totaled car used in business with TurboTax.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
