Is an insurance payout on a car used for business purposes included as business assessable income?

 Author: BlakeATO(Community Support)Community Support

4 Nov 2021

Hi @Taxpuppy

You need to do a balancing adjustment.

If you receive $8,800, and use the vehicle for 82% business, you have $7,216 to consider in your balancing adjustment.

Let's say the depreciated value on the tax return is down to $5,216. This means the difference of $2,000 is assessable income to the business.

Or, let's say the depreciated value on the tax return is down to $8,216. This means the difference of $1,000 is deductible to the business.

You can read about balancing adjustments on our website.

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