Wrecking your vehicle is never a good thing.
But both wrecking your vehicle and missing out on your tax benefits is even worse.
Corporations and individuals face the same rules on the business part of the totaled vehicle.
But on the personal-use part of the vehicle,
the individual has a personal casualty loss, whereas
the corporation has no personal part. It has a 100 percent business vehicle.
Tax law calls the wreckage and totaling of your vehicle both an involuntary conversion and a casualty. Apt descriptions!
When you have insurance and you total your vehicle, the insurance company will keep the vehicle and give you or your corporation a check for the pre-accident value of the vehicle.
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