Retirement tax questions

I have the same situation and am wondering how would anyone know the FMV of the "lemon" at the time they bought it.  Bought for 38k.  Lemon law settlement was 65k which included paying off my loan.  What is my loss/taxable amount?  Never received a 1099. The fogginess of this subject is maddening.  I've been everywhere trying to figure out how you know the FMV of a lemon when you bought it (assuming it's impaired when you buy it).  If it's unusable then it's -0- and my loss is $38k - but if they paid off the loan, then how am I at a loss?  SO confusing