When a vehicle used for business or business/personal is flooded and a replacement vehicle was purchased from the insurance claim, is this referred to as a "trade-in"?

[Lyndal]

Is the term "trade-in" linking to like-kind exchange form?

[AmyT · Accepted solution]

If your car was totalled, it was "sold" to the insurance company for the amount of the claim that you received.

This is not considered to be a trade-in, and should not be reported as such - doing so does trigger the like-kind exchange form.

You should report the totalled vehicle as sold on the date it was totalled, and use the amount you received from the insurance company as the selling price.