You sold the vehicle to the insurance company now let's figure out if it should be reported and where:
If it was your personal car, sold for less than you paid, the loss is not deductible and the form isn't entered.
If it was your personal car and made money on the accident, the gain would be taxable and the form would be entered.
If this vehicle was used for business purposes, you will need to edit the asset on your business return and mark it disposed of for that sales price.
Example 1:
You paid $30,000 for the car.
Insurance bought it for $5,000.
If this was personal use, you sold it for less than you paid, not taxable.
Example 2:
Car $30,000
Insurance $35,000
Personal use vehicle, made a profit so it should be reported as taxable $5,000 income. It is entered on Sch D under investments. Select stocks, bonds, other and enter your 1099S value for the sales price.
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