I purchased a business truck in November of 2006 and in November of 2007 the truck was repossessed. I still owed 40,376.00 on the truck and the company sold the truck for 11,782.00. There is still a balance of 28,594.00. I have tried to research the IRS website about this and all I can gather is that I will have to declare the 28,594.00 on line 21 as other income from the disposition of the truck and my loss is a nondeductable loss. Is this correct? Thanks a lot.

That's only if the debt was forgiven, was it? If you still owe it then no. If the debt was forgiven you should have gotten a 1099.