Abandoned or totaled business car
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Can You Write Off Abandoned or Totaled Business Car?
Short answer: A business vehicle that's totaled or scrapped can produce a deductible loss on its remaining basis, after insurance.
Insurance payouts above basis can create a gain or depreciation recapture.
Records to keep: Keep a contemporaneous mileage log (date, miles, business purpose), business-use percentage, the purchase contract, and a photo of the door-jamb GVWR sticker.
BW-B22-00653
medium risk
Abandoned or totaled business car
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General Business
Vehicles & Fleet
Vehicles by Make & Model
A business vehicle that's totaled or scrapped can produce a deductible loss on its remaining basis, after insurance.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
A business vehicle that's totaled or scrapped can produce a deductible loss on its remaining basis, after insurance. Insurance payouts above basis can create a gain or depreciation recapture.
Category
- Vehicles by Make & Model
vehicle model
search demand 2026
operating
depreciation
loss