topic Can I deduct a new car I had to buy after an accident? in Deductions & credits

Can I deduct a new car I had to buy after an accident?

akronsma51 — Mon, 23 Feb 2026 13:37:38 GMT

I paid 19k after taxes for a car. I was hit by someone in March 2022 and they totaled my car. I then bought a car that was 21k after taxes. Can I claim any of this?? I couldnt find where to input any of the info when filling out my return

Re: Can I deduct a new car I had to buy after an accident?

ee-ea — Thu, 02 Feb 2023 05:35:39 GMT

No deduction.

A federal casualty loss is an individual's casualty or theft loss of personal-use property that is attributable to a federally declared disaster. The casualty loss must occur in a state receiving a federal disaster declaration.

Re: Can I deduct a new car I had to buy after an accident?

akronsma51 — Thu, 02 Feb 2023 05:43:04 GMT

I thought you could deduct sales tax? Someone totaling my car isnt considered a casualty loss??

Re: Can I deduct a new car I had to buy after an accident?

xmasbaby0 — Thu, 02 Feb 2023 06:52:51 GMT

@akronsma51

Sorry for your car accident and hope you are okay.

Since tax year 2018 you cannot get a federal deduction for a casualty loss unless you are in a federal disaster area. Sorry.....a car accident is not in that category, so you cannot deduct anything for that on your tax return. You are posting from the Free Edition which does not support itemized deductions.

Unless you also have enough other itemized deductions to enter like mortgage interest, etc. that will add up to a total that exceeds your standard deduction, the sales tax on your car will not have any effect on your tax due or refund.

If you are single you would need more than $12,950 of itemized deductions.

Re: Can I deduct a new car I had to buy after an accident?

Mike9241 — Thu, 02 Feb 2023 09:40:05 GMT

the sales tax is deductible if you itemize but note that the total for deductible taxes on schedule A is limited to $10,000.

*****

Someone totaling my car isnt considered a casualty loss. it is but it is a personal casualty loss that is not deductible for the years 2018-2025 because Congress changed the tax laws in 2018 and the POTUS signed the changes into law. had you been self-employed all or a portion could have been a business casualty loss. no insurance? because another rule that has been in effect for a long time says that if a loss is deductible you can't deduct the portion covered by insurance if you don't file a claim and if you do the loss is reduced by the insurance proceeds