Reimbursement of your cost is not taxable since you are only getting the money back that you paid for the vehicle. Any punitive damages is taxable income.
If this was a personal vehicle then after 2017 attorneys fees are no longer deductible. Business use vehicles might be deductible.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
