Stolen Business Vehicle

[tvanslett]

I had a 90% business use vehicle stolen. Insurance paid the market value of $18,000 which more than paid off the loan. Although it was not actually sold, do I use this as the sales price?

[KarenM90 · Accepted solution]

Yes!  Exactly.  Record the full amount of the Insurance Proceeds and dispose of the vehicle.

[larry510]

I also had my business vehicle stolen (in 12/2021). The vehicle was placed in service in 12/2013, and I believe I have fully depreciated its value. There was no insurance payout on the vehicle, however the vehicle is estimated to be worth $1500. Would this be reported as a loss? If so, how would I do this? Please advise.

[Mike9241]

 If you claimed depreciation on any of the property in previous years, you can only count your adjusted basis in the property as its value. since it's fully depreciated there is nothing to claim.

[Carl]

Although it was not actually sold,

In a sense, it was sold..... to the insurance company. It can be reported as such too, keeping in mind any depreciation recapture.

@larry510 

I believe I have fully depreciated its value. There was no insurance payout on the vehicle, however the vehicle is estimated to be worth $1500.

If it's fully depreciated, you have nothing to claim at all. Claiming a $1500 loss would be double-dipping. Simply work through the vehicle and the easiest thing to do is to indicate you gave it away. That way, there's no depreciation recapture.