I did not mean to imply that the full amount was taxable. Only the portion that is above one’s basis in the totaled vehicle. That said, where the loss is catastrophic rather than a normal sale, my understanding is that if a more expensive vehicle is purchased, there is no tax consequence...
If you are getting more for Your truck than you paid for it, you will have tax consequences unless you use all of the proceeds on a new vehicle. I had that situation about 4 years ago. I think the IRS gives you two years. You should check with your tax advisor.
My recommendation would be to file the claim against your insurance carrier and have them subrogate against the other driver's carrier. Your claim would utilize your collision coverage and if your carrier recovers, you should be able to get your deductible back.
I am sorry that this happened...
That does not happen in Virginia since simple interest loans have no prepayment penalties. The finance manager wants you to keep the loan so that the bank/finance company does not charge back his commission for your finance transaction.
I bought a new car from a Maryland dealer and the F&I...
What you get depends upon the state you are in. In Virginia, there is a refund of tax, tags and title. There is a deduct for mileage to when the first problem arose. I cannot speak to after market accessories since I just transferred them from one vehicle to another.