Wow, you really missed the point on that one! COVID had nothing to do with the casualty loss! The only reason I mentioned it was that it made it possible not to need to rent a car. In this case, COVID was a help, not a hurt.
The casualty loss was that the car engine blew up, resulting in the immediate loss of use of the car and the substantial devaluation of the car by more than 50%. Is this not the same casualty loss as if it were in a severe accident?
Also, the IRS link in your response is broken.
