Can I deduct the loss of my vehicle if it was stolen? I am a gig worker and used my vehicle for business use only

[perkyj_99]

I inherited a jeep when my grandmother passed away and used it for work  -  I don't know if I am considered self employed or a gig worker (I pet sit, clean houses, etc..). During one of my jobs my jeep broke down on the side of the road. I did contact the police when the tow company told me that it had been stolen and they provided me with a report number. Also, if you pull up the vin number it does show an active theft situation (sorry, don't remember how it's worded). I am wondering if I am allowed to deduct that from my taxes and if so, how I would go about doing so. Thank you

[Vanessa A]

Yes, you would be able to take a prorated deduction on your schedule C.  How you will do it is you will go into the Business Vehicle expenses, then in the beginning questions it will say did you dispose of or stop using this vehicle.  You will answer yes.  Then you will enter $0 for the amount you disposed of it for ( or sold it for even though it was a sale).  It will ask you your basis in the vehicle.  This would be the Fair Market Value on the Jeep on the date of your grandmothers death.

Continue through answering the questions.  You will need to know the miles you drove it for business and the miles you drove it for personal.