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| *Loan,banking and credit>>>car tax |
If your car is stolen, can you claim the loss on your taxes? |
If your car is stolen, can you claim the loss on your taxes? Casualty and theft losses are reported on a specific form (don't remember the number and too lazy to go look it up). The loss then carries to Schedule A, which means in order to claim the loss, you need to itemize. It doesn't matter that the item was a personal asset or a business asset. The amount of the loss is difference in the fair market value of the item BEFORE the incident (the value of the car while you still had it), and the fair market value of the item AFTER the incident (what the car is worth after it is stolen, and since it is stolen and you no longer possess it, the value is zero). This difference in value determines your loss. You then need to reduce your loss by the amount of reimbursement you receive from your insurance company. If there is anything left, you can then calculate your deductible loss further. For each loss event, you need to reduce the amount of loss by a $100 "floor" amount. This is the base amount which is not tax deductible. This floor amount is per event, so if someone broke into your house and cleaned it out, you could add up all of the items stolen and you just lose the $100 on the total since the theft is one event. Finally, only the portion of the loss that exceeds 10% of your adjusted gross income is deductible. Example: Value of car before - $10,000 Less: value of car after - ($0) (car is stolen and not recovered) Less: insurance proceeds - ($0) (car insurance had lapsed) Less: floor amount - ($100) Amount eligible for theft loss - $9,900 If your adjusted gross income was $50,000, then the amount that is deductible on Schedule A is $4,900. yes,if you were (obviously) using your car to produce income. driving to and from work does not count. prof abe bebottels guide to everything Probably if you own a real expensive car Any personal posession that has been stolen can be declared as a loss if it is not covered by insurance. You will need a police report to confirm the incident if you are audited, and probably proof of purchase for the amount. I don't remember if there was a threshold the way there is with medical expenses before it imacts taxes though. See your... well. you know the rest. -Dio There is a section of your income taxes that askes if you suffered a loss due to fire, theft or flood... you can claim your loss but then you will also be asked if you received any money from insurance. This is an area you may want to think about especially if you did receive ins. monies. good luck. on line tax services. |
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