Is it Taxable Income ?

[rharry]

What is the name of your state? NY

I bought a Car for $6000 and paid Taxes for that amount. My car met an accident and insurance company compensated for my car is $7000. Is that additional $1000 is taxable income or it is just compensation to my car ? Do I need to show to IRS of additional amount.


Thanks

SS

 

[LdiJ]

What is the name of your state? NY

I bought a Car for $6000 and paid Taxes for that amount. My car met an accident and insurance company compensated for my car is $7000. Is that additional $1000 is taxable income or it is just compensation to my car ? Do I need to show to IRS of additional amount.


Thanks

SS

Generally insurance reimbursements are not taxable. Its a bit odd that you got more on a "total" (I am assuming it was a total) than what you paid, ...but unless you put no money into rehabing the car its probably not a taxable event.

 

[rharry]

Generally insurance reimbursements are not taxable. Its a bit odd that you got more on a "total" (I am assuming it was a total) than what you paid, ...but unless you put no money into rehabing the car its probably not a taxable event.

Car was totled
SS