Totaled business used car, received reimbursement, started lease agreement for the new car without any down-payment, is this reimbursement money completely gain?

gogicbojan — Thu, 06 Jun 2019 09:12:43 GMT

In 2016 my business used car was totaled in a car accident and I received reimbursement paycheck of cca $7000 from the insurance. Ten days after I purchased another vehicle through an lease agreement ($5000 buy out after 3 years) but I didn't have to put any money in right away. How I should file this $7000 for the year 2016? Is it completely gain or I can deduct some of it since I started having weekly payments of $234?

Insurance reimbursements for your car are not taxable. Th...

MinhT — Thu, 06 Jun 2019 09:12:45 GMT

Insurance reimbursements for your car are not taxable. They are an indemnity for your loss, and not income.

You do not report the $7,000 on your tax return.

topic Totaled business used car, received reimbursement, started lease agreement for the new car without any down-payment, is this reimbursement money completely gain? in After you file

Totaled business used car, received reimbursement, started lease agreement for the new car without any down-payment, is this reimbursement money completely gain?

Insurance reimbursements for your car are not taxable. Th...