Skip to main content
February 23, 2025
Question

If 1099 is asking about the sale of my vehicle but I didn't sell it. was totaled in an accident.That was not my fault how do I fill this out?

  • February 23, 2025
  • 1 reply
  • 0 views
No text available

    1 reply

    AmyC
    February 24, 2025

    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.

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"