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K-M-
New Member

Personal/business car was in at fault crash late 2017. Insurance settled but I replaced car Jan 2018. Is that taxable $ and how do I report the loss properly w/ no trade?

My question seemed slightly nuanced compared to others despite covering similar terroritory:

I was in an at fault accident with my personal / business vehicle in late 2017. The insurance settled and I was paid for the totaled vehicle. I put that into my bank account and started saving for an upgrade and eventually purchased a new vehicle in Jan 2018.

Because I was at fault and I didn’t replace the vehicle in 2017, as far as turbo tax is concerned did I “sell it” where I have to report that money as income, denote a sales price of the car / expense of sale, and report a basis gain / loss? And can I report any other loss for the vehicle? 

2 Replies
fanfare
Level 15

Personal/business car was in at fault crash late 2017. Insurance settled but I replaced car Jan 2018. Is that taxable $ and how do I report the loss properly w/ no trade?

Generally you don't report car sales unless it is a collector investment.

Your insurance payout is not income.

compensated losses cannot be deducted.

K-M-
New Member

Personal/business car was in at fault crash late 2017. Insurance settled but I replaced car Jan 2018. Is that taxable $ and how do I report the loss properly w/ no trade?

I just have no idea what to report on the gain / loss basis section of deductions.
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