How do I account for loss of a vehicle? Filing 1099-NEC it asks if I stopped using vehicle in 2024. It was a total loss accident, It was sales?

[kyssmm1]

My 2023 vehicle was declared a total loss. I used the standard mileage deduction from 2022 to 2024 for the vehicle declared a total loss and I don't know what I should enter for the trade-in. My insurance paid for the car and the GAP covered the other part, Turbotax has:

1. Depreciation at 100% of business use,

2. AMT depreciation at 100% of business use,

3. Total actual depreciation deducted

4. Total actual depreciation deducted from AMT.

[KrisD15]

To clarify, what was your business use percentage? Was it used 100% business use or was it also available for personal use?

What is the 109-NEC reporting? Something in relation to the car or just self-employment income?

When you use the Standard Mileage rate, depreciation is build-in to the rate. TurboTax can't figure it, you need to multiply the miles claimed by the "Depreciation Equivalent" for that year.

2022 it was .26 per mile

2023 it was .28 per mile

2024 it was .30 per mile

You'll also need to take your cost and multiply that cost by your business percentage. 

This would have been the value of the vehicle that you used when you placed the vehicle into service. 

[kyssmm1]

Ok yes, the percentage is 70% business use and 30% personal use, understanding how I should do the depreciation. Now my question is, do I have to state that the vehicle was sold? Since it was declared a total loss due to the accident and the insurance was the one that paid for it.

[DianeW777]

Yes. The following information will show you how to report the disposition of the vehicle and how to report the sale. Insurance payment is the selling price, do not adjust any cost of the new vehicle for any trade in amount or the insurance payment.

The standard mileage rate (SMR) has a depreciation component. Use the information below to arrive at the sales price, cost plus expense and depreciation. In the vehicle asset select it was converted to 100% personal use, also Sold, traded, disposed of.....

@KrisD15 has provide the depreciation component of the SMR and the chart is included here.

1. Total all of the business miles for the life of the vehicle
2. Total all miles on the vehicle for the life of the vehicle
3. Business miles divided by total miles = Business Use Percentage for the life of the vehicle
4. Take the original cost of the vehicle x the business use percentage = Business Cost
5. Take the sales or insurance payment x the business use percentage = Business Sales Price
6. Calculate all of the business miles by year with the rate in the SMR for depreciation (chart attached) to arrive at the total depreciation considered used by the IRS.

Next enter your Sale of Business Property (do not enter any sales information in the vehicle asset)

1. Income at the top
2. Scroll down to Other Business Situations
3. Select Sale of Business Property
4. Select Sales of business or rental property that you haven't already reported.
5. Answer 'Yes' to Do all of the following apply...?
6. Enter your sales information, do not make an entry for depreciation (no zeros)
   1.  Description of the Property (Vehicle made/model/year)
   2. Sales Price/Sales Expenses 
   3. Date acquired and date sold
   4. Cost
   5. Depreciation

@kyssmm1