Work vehicle totaled, insurance paid–replaced. Taxes?
Doing my taxes…
So last October my Tundra was hit and totaled. Other driver’s insurance paid out. I put all that money toward a newer used truck–about half its value, and financed the other half.
How should I deal with this in my taxes?
I owned the Tundra outright.
I understand the insurance payout for the totaled vehicle is Business income/gain. Should/can I section 179 the new purchase? Only part of it? What about the 1/2 that’s financed.
Never had to do this before.