Tax law calls the wreckage and totaling of your vehicle both an involuntary conversion and a casualty. Apt descriptions!
If you use your vehicle for both business and personal purposes, you need to split it between its business and personal components in applying the tax rules. This article assumes that the insurance company declared your vehicle totaled.
Your first task is to identify the amount of your gain or loss. Since the vehicle is totaled, the insurance company will keep the ... Log in to view full article.