My wife is in a sticky situation. She was leasing a vehicle for her self-employed work and writing off all of the lease payments. Then at the end of the lease, she bought out the vehicle (didn't write off the purchase). At that point she is the owner of the vehicle and claimed a business portion of the vehicle expenses. A few months later, she crashed it and received a generous insurance payout due to our good insurance policy. Our accountant says that we need to claim the payout as income, which would result in about $5000 in taxes! He argues that because over the years she had written off all of the expenses while leasing, the car essentially is a business asset, since it was claimed 100% for work while under lease. However, I feel like a case can be made that, at the time of the crash, the situation was different since the car had become a personal asset. What does the previous history of the vehicle matter? Any thoughts, good Canadians?