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Deductions & credits
The IRS won't let you deduct losses on personal items.
As for the returned money ($1,000) from the car dealership, you can think of as getting a discount off of the original purchase price because they overcharged you (due to undisclosed damage to you at the time of the sale).
For example, say you bought your new car for $10,000 (your agreed upon purchase price). The dealership said it was worth $10,000. However, they later realized that they forgot to tell you about some damage.
Had you known about the damage at the time you bought it, the value of the car would have been lower, say only $9,000. They probably picked that $1,000 refund amount to you as gesture of good will, so you wouldn't think they had cheated you (when you might have found out about that damage in the future).
Thus, you should have only paid $9,000 originally; that $1,000 is a return of your money.
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