@cherryiss wrote:
@Opus 17 , thank you. How should I report that on TurboTax? I didn't receive a 1099MISC.
It's a capital gains transaction. Go the section on Sale of Stocks and Other Investments. There are several categories and then "something else" (basically, an "other" category). Enter the transaction as if you sold the car to the insurance company or back to the dealer or whatever. Purchase date, purchase price, selling date and selling price you should know. (You can include any sales tax that you paid in the purchase price. You can also include transportation if you paid to have the car delivered; you can include the fee you paid to the DMV to register and title the car.) Only the gain (the difference between the payment and your cost) is taxable.
Capital transactions include not just stocks, bonds and real estate, but also includes the sale of any tangible physical property for a gain or loss, including a car, antique furniture, and baseball cards. Basically anything you can buy, hold, and later sell.
