Based on the information in IRS Pub 557, your answer is not correct. Here are some various sections of this publication related to auto accidents:
> "Casualty losses can result from a number of different causes, including the following: car accidents"
> "NONDEDUCTIBLE LOSSES: A casualty loss isn't deductible, even to the extent the loss doesn't exceed your personal casualty gains, if the damage or destruction is caused by the following: A car accident if your willful negligence or willful act caused it."
> "The decrease in FMV used to figure the amount of a casualty or theft loss is the difference between the property's FMV immediately before and immediately after the casualty or theft."
> "CAR VALUE: Books issued by various automobile organizations that list the manufacturer and the model of your car may be useful in figuring the value of your car."
> See also: Example at the top of Page 9, related to excess damage over car insurance policy reimbursement.
As I read this publication, losses from auto accidents ARE deductible as casualty losses provided the loss wasn't caused by the driver claiming the loss, but are limited to the $100 and 10% rule. Your comments?
