So if my adjusted basis in the example is $6k ($46k original purchase price - $40k settlement), and I traded the car in this year (2022) on a new car and the trade in value was $22k, then my taxable gain would be $16K, which is the trade in value of $22k less the adjusted basis of $6k. I don't know whether or not I'm going to receive a 1099 because the attorney was very quick to tell me they don't advise on tax matters and would not tell me whether or not I'll get a 1099. Would this all be reported as other income or some type of gain on sale of? The vehicle was used for personal use only...I don't own a business.
