@sockfight wrote:
I purchased the car for personal use at about $13k. Later, I placed the car 100% in service to the business (no more personal use) and determined the fair market value was $12k. I began a depreciation schedule at this price. Finally, when the car was totaled, insurance paid $17k. Is this a gain of $5k? $4k? Or something else? I had assumed $5k based on the earlier discussion...
Your Basis for a gain starts at $13k. BUT as Critter pointed out that Basis is reduced for depreciation that you claimed (or could have claimed).
https://www.irs.gov/publications/p551#en_US_201812_publink[phone number removed]
