Damages
Hello,
my husband is an employee and also uses our private car for business trips. He receives a flat rate for kilometers from his employer. Last year, the parked car was damaged by another driver during a business trip. Since the damage did not bother us visually, we did not have it repaired. We received a compensation payment from the other driver's insurance.
We would like to know the following:
Since the vehicle was damaged during a business trip, is the compensation payment received taxable? Please provide an explanation.
If the compensation payment is taxable:
1.) Where should the compensation payment be entered in the tax return?
2.) The compensation payment is offset by a decrease in the value of the vehicle. Could this decrease in value be claimed as deductible expenses and how would it be determined?
Thank you in advance.
