topic Tax write off for car accident in Business & farm

Tax write off for car accident

kevin19801980 — Tue, 10 Mar 2026 07:06:00 GMT

I was in a car accident with someone who did not have insurance. He caused about $10,000 in damage to the rental I was driving. My insurance wouldn't cover the whole amount so I'm left paying $8,500 to the rental company personally. I intend to write the $8,500 off as a business expense. My question is do I write it off in the tax year in which I am giving the bill from the rental company, or the tax year in which I actually pay the $8,500 to the rental company

Re: Tax write off for car accident

Bsch4477 — Sun, 13 Nov 2022 18:19:30 GMT

Assuming that you are self employed and used the car for your business and you are on a cash basis, deduct the expense in the year you paid it.

Re: Tax write off for car accident

Mike9241 — Sun, 13 Nov 2022 18:20:59 GMT

if you are a w-2 employee, you can't deduct the loss.