Business Vehicle Totalled

[jenbcute]

I owned a vehicle that I used for business purposes but my boyfriend hit a deer & my insurance totalled it out! The amount my insurance paid was within a couple hundred dollars of my payoff & the loan company just zeroed it out!

I'm not sure how to enter that!

Thanks!

[Mike9241]

the loan payoff has nothing to do with how to report the vehicle disposition or the gain or loss

the IRS considers the car sold for the insurance proceeds. if you're using schedule C the business portion of the proceeds gets entered in the disposition section for the vehicle.  this is technically wrong but Turbotax doesn't seem to have a way to show the disposition as due to casualty and thus include form 4684 in your return. the result is the same.  

[jenbcute]

Ok, I think I understand...

So, the insurance claim paid me a total of $5,869.47

For the sales price of business vehicle expenses I entered $1504

($5869.47 x business percentage 0. 2563) 

Am I correct so far? 🥺

If so....

Next, I get a screen that says...

Since you didn't claim depreciation for this vehicle we'll also need the vehicles total cost. The cost would normally be the purchase price. If you do not immediately use the vehicle for business the cost will generally be the fair market value of the vehicle at the time when you placed it in service.

The insurance company totalled it out so I'm assuming the amount they paid on the claim would be fair market value, correct??

So would I use the total amount they paid out, $5869.47? Or, would I only use 25.63% of that, which would be the business portion?

Thanks in advance for your help! I very much appreciate it!

Jen

[Scubaprousa]

Was this vehicle claimed under your schedule C?  If you did, was the vehicle depreciated fully or still being depreciated?

[jenbcute]

@macuser_22

Can you help with this question too?

[macuser_22]

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@jenbcute wrote:

@macuser_22

Can you help with this question too?

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Sorry,  business deprecation and losses is not my area of knowledge.