Hurricane Milton resulted in a federally declared disaster area. Per the IRS, if the loss is caused by a federally declared disaster, you may deduct personal casualty losses relating to your home, household items, and vehicles on your federal income tax return. However, you cannot deduct any amounts reimbursed by insurance.
You would have to prove that the damage to the vehicle was a direct result of the hurricane. A casualty loss can result from the damage, destruction, or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake, or volcanic eruption. A casualty doesn't include normal wear and tear or progressive deterioration.
The sales tax may be deductible if you itemize. Taxpayers are allowed a deduction for state & local income taxes or state & local sales tax, but not both. If you opt to deduct sales tax, you can take the general sales tax deduction based on your state rate. In addition, you will be asked if you made any large purchases for the year. There, you can enter the amount of sales tax paid for the car.
Casualty Losses
Casualty, disaster, and theft losses
Help for victims of Hurricane Milton
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