Opus 17,
Your explanation made some sense to me. The price of the car was $28148. The residual amount at the end of the lease would have been $17158.
My lease expiration was supposed to be earlier this month. It was totaled last November. A that time,only had 3 payments left (I had just made the 33rd payment). If I remember correctly, the buyout amount at that time was around $19000 as I was thinking about trading it in either in Dec or Jan.
The settlement amount calculated by the insurance company was $24292. They paid the leasing company $22860 and sent me the difference of $1432. Then, later, the leasing company sent me a check for $3508 with no explanation. When I called, the person I spoke to said the insurance company overpaid them (???). So, in total, I received $4940 from the $24292 settlement amount calculated by the insurance company. Is the $4940 considered taxable income?
I should mention the accident was not my fault. The other party ran a red light and t-boned my car. I would up having to file the accident through my own insurance company because I the at fault insurance company was dragging their feet. I figured my insurance company could deal with them.
Oh, I almost forgot I did eventually receive a check for $2500 for “pain and suffering from the at fault insurance company. I did not lose any income due to injuries received (only severe bruising in spite of my vehicle rolling over twice. As far as I can determine, I don’t believe this amount is taxable (??).
Thank you so much for your help. I started to file my taxes online using Turbo Tax but could not find any information with regards to these payments.
Leslie Smith
