Mr. Choe’s automobile was totaled. The insurance company paid him fair market value for this totaled vehicle.
In preparing his tax return for the year, Mr. Choe entered the insurance payment in Turbo Tax, and Turbo Tax made its automatic calculations of depreciation and taxable gain.
The taxable gain was too high, as Turbo Tax assumed Mr. Choe had been in business during his full ownership of the vehicle; he had been in business for only one year.
Mr. Choe discovered ... Log in to view full article.