I am independent contractor for Uber/Lyft, during the year car in accident and was declared total loss. Insurance paid fair market value and gap insurance covered the difference. How do I record this in my business income and business section? I checked that I stopped using this vehicle in 2017. Not sure what to list as "Sales Price" and "Expense of Sale"?
Do I list sales price as what Insurance paid for it? Also lists the question Expense of Sale, which I did not have any so I know to enter zero for that.
It them prompts me to enter in Vehicle Total cost which I am listing the original price I paid when I purchased the vehicle including all taxes. Is this accurate?
If you stop using your car for business, you can tell TurboTax that you disposed of the vehicle.
If you stop using your car for business, you can tell TurboTax that you disposed of the vehicle.
So my car was totaled that I bought to do Uber in I still owed on the loan the insurance company paid for less then it's worth but gap will end up paying rest so I made nothing off of it how do I fill it out
Although your car was totaled, you received income from the insurance companies (insurance and gap). Income received from the sale of an asset (vehicle) is not subject to self-employment tax. However, there is also depreciation recapture to consider if the car was used and claimed on previous tax returns.
TurboTax can help you calculate the loss, gain, or depreciation recapture. To enter a sale of a business asset in TurboTax, you can follow these steps.