Do I have to pay taxes on money I received for an auto insurance claim?

[shea-g]

My car was struck by lightning. The insurance company totaled it. Do I have to pay taxes on the money I received from my insurance company?

[ToddL]

Unless the insurance company paid you more than the vehicle's fair market value (not what you owed), then the payment is not taxable or reportable on your return. As a rule, they do not pay more than the FMV.

If they paid you less than the vehicle's fair market value, you may be able to claim a casualty loss deduction.

https://ttlc.intuit.com/replies/3301959

[AnaAnna]

Does anything change if the bonus depreciation method was written on this car in the previous year? Should I return some of the money to the IRS?

[DaveF1006]

To clarify, was your vehicle a business vehicle?

@AnaAnna