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My dad bought me a car as a gift a year ago. Recently, my car was totaled and my insurance gave me a check. How should I report this for taxes?

Forum|Forum|6 years ago
June 1, 2019
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* There is no personal loss for me. This car was a gift.*

I sold my total car to my insurance company and they took out my deductible.

Can I give that money back to my dad? He will buy me another car with it.

Best answer by TomYoung

A reimbursement for a totaled car is not reportable. I'm sure the car cost you more than you received so you have a personal loss, a loss that you can't deduct. There's no point in giving the money back to you dad. If he want's to buy you another car simply have him write a check for the difference between your $15,100 payment and the cost of the new car.

Tom Young

T

TomYoungAnswer

A reimbursement for a totaled car is not reportable. I'm sure the car cost you more than you received so you have a personal loss, a loss that you can't deduct. There's no point in giving the money back to you dad. If he want's to buy you another car simply have him write a check for the difference between your $15,100 payment and the cost of the new car.

Tom Young