I had a rental car accident last year and insurance covered a part of it

[abhishek-rudresh]

I had a rental car accident last year and insurance covered a part of it. I had to pay the balance to the rental car company. Is that deductible?

[MichaelDC · Accepted solution]

Yes, the balance paid after insurance would be deductible if the rental car was used for business travel or transportation. No, if the car was personal, non-business, or non-work related.