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Brain dead question regarding totalled vehicle


NECPA in NEBRASKA

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I just want some reassurance that I am handling this correctly. New (used) business vehicle was purchased 8/10/18 and totalled on 12/21/18. The insurance check was not received until 1/7/19. They are a cash basis. I know that I should report it on the 4684 for 2018 with no insurance reimbursement. Do I just report the insurance check as income in 2019? That seems like the right way to do it to me, but I am really tired and unsure of myself.

Thanks,

Bonnie

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Just one thing, I believe since the vehicle wasn't in service at the end of the year, there would not be a deduction for 2018 depreciation.

Then you would probably have a loss in 2019  assuming the insurance check was less than the original purchase price.

 

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