IRS Pub 463 page 35 seems to say that if the insurance payment for a totaled car (used for business) is less than the adjusted cost basis, there is no gain and no recapture of depreciation. In my case, the car was used 30% for business over 8 years. 30% of the insurance payment is less than 30% of the original price of the car. But that "loss" is less than the the cumulative depreciation taken. Does the depreciation need to be subtracted from 30% of the original price and then any resulting gain would require an equivalent recapture of depreciation?
