Business Loss

I am a truck driver, a customer refused a produce load I attempted to deliver valued at $9000. My insurance carrier denied my claim so I was left with the tab. Can I write off this expense?

Deductions & credits

it's unclear as to whether you paid the $9.000 out of pocket or just couldn't collect on the load.

if you paid it out of pocket, you can deduct what you paid for it. if you incurred no out-of-pocket expense, you just couldn't collect on delivery there is nothing to deduct because you haven't included it in income.  

Deductions & credits

After the customer refused the load , the shipper wouldn't take it back, so the shipper charged me for load, which now became my load and I ended up disposing it.

JohnB5677
Expert Alumni

Deductions & credits

Yes, you can claim this as a business loss. 

  • You paid $9,000 for the load when it was refused. 
  • This then became inventory. 
  • You stated that you disposed of it.
  • Did you get any compensation from the disposal.
  • Any amount received would be deducted from the $9,000 and represent your loss.
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View solution in original post

Deductions & credits

Does this particular loss go under inventory / cost of goods, or business expenses?

JeffreyR77
Expert Alumni

Deductions & credits

It should go under Inventory.