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New Member
posted May 31, 2019 8:52:33 PM

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

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?

0 3 9840
3 Replies
New Member
May 31, 2019 8:52:34 PM

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

New Member
Feb 12, 2024 4:03:28 AM

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?

Expert Alumni
Feb 12, 2024 6:34:53 AM

To clarify, was your vehicle a business vehicle?

 

@AnaAnna