Question

Car for my business (standard mileage ded) was totaled. Ins payout went into the cost to replace. irs says i shouldnt have a gain but cant figure this out in desktop vers

Forum|Forum|2 years ago
April 12, 2024
1 reply
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Publication463 states if you spend all of the proceeds from insurance to acquire replacement property within a specified period of time you dont recognize any gain. TurboTax desktop version doesnt ask about a loss when disposing of the vehicle and comes up with a gain based on my past standard deduction. How would I correctly enter this.

TurboTax Online

AmyC

Employee

Loss due to casualty or theft does allow you to dispose of the car with no gain. Your basis in the replacement property is its cost minus any gain that isn’t recognized. See Pub. 547 for more information.

When you enter that you disposed of the vehicle, you will need to enter a false sales price. Enter a sales price so that you have no gain or loss.

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