Question

How do I account for loss of a vehicle? Filing 1099-NEC it asks if I stopped using vehicle in 2022. It was a total loss accident, bought new vehicle after. Itwants sales?

Forum|Forum|3 years ago
January 21, 2023
1 reply
0 views

It wants sales price (business percentage), I have no idea how to fill out this section.

TurboTax Self Employed Online

A total loss accident means you "sold" it for $0. TT is trying to determine if you need to do "depreciation recapture" (even if you used the standard mileage deduction rate).

You don't need to do depreciation recapture, since you got $0.

If you got an insurance payout, then that amount is what you "sold" it for.

S

sabrinacameron1Author

Thanks - I owed on the loan. My insurance paid out for that full amount, and I received a small amount additional due to the vehicle value. Would that additional amount (not the whole pay out to the loan) be what the “sales price” is?

Hal_Al

Q. Would that additional amount (not the whole pay out to the loan) be what the “sales price” is?

A. No. The whole payout is the sales price. The fact that you paid off the loan does not mean that you didn't "receive" the money. You used the original loan to buy the car, so that is your cost basis.