What is a gain or loss on a car sale?

Your gain or loss on the vehicle is the excess of the sale price or insurance proceeds over your adjusted basis, which is the cost of the car less any depreciation taken. If this was a personal vehicle only, you would not be able to deduct any loss on the disposition.

How does a business recognize a gain or loss on a vehicle?

Businesses now recognize a gain or loss on the old vehicle by comparing the trade-in value afforded by a dealership to the un-depreciated value of that vehicle. Once the gain or loss is determined, the rules for a sale apply to determine its character. Distribution to Owner

Is there a gain or loss if a vehicle is disposed of?

If it is a gain, go to #3. There is neither a gain or loss. Just enter the disposition date, and leave the sales price BLANK. However, with less than 5% business usage, any gain or loss will likely be very minimal. You may consider just going directly to #3. I have a vehicle that was disposed of (traded in) during 2019.