I was in a car accident and my work car was totaled. I had to pay the difference of my loan even though it was not my fault.I waited 4mths to replace it. How do i file?

[mshopper72]

I am getting stuck in line 50 and 51 Sch C...Keep getting error message re: Depreciation.  I've followed some of the other answers by deleted and re entering the vehicle.  

I did not sell it since it was a total loss and I had to pay the remaining balance of my loan.  I calculated the 2016 year business miles used standard rate -the % of business use for that year.  I put the purchase price of my car when i bought it in 2016.  I tried overriding and then do another smart check and it gives me the same error. 

Please help!  Not sure what else to do and its the last thing...

[mshopper72]

I keep getting sent to Like Kind exchange when filing the old and new car.  It was not a trade in since i waited 4 months.  Then get error messages and flags

[DS30]

Was it a business vehicle? if not than just put in your old car only under the casualty loss section?

To enter casualty loss in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "casualty loss" in the search bar then select "jump to casualty loss". TurboTax will guide you in entering this information Also note that you will only be able to claim a casualty loss if you itemize your deductions.

[mshopper72]

It was a business vehicle, I've done the casualty loss in the personal other deductions losses.  What i'm having flags with is the Business Car portion of expenses form.  I've input the end of use of old but its not a trade in.  My accident was in March and i replaced it in July so the like kind is giving me errors.

[DS30]

Then just consider the old car disposed of on the March date and the new car put in use on the July date to avoid this like-kind exchange error.

[mshopper72]

I tried that but then its asking me how much i sold it for and all the fairmarket value and cost of sale info.  I didn't sell it.

[DS30]

just report that you sold it for the same amount as the basis in the car and the cap gain will net to $0

[mshopper72]

ok, i got past the like kind flag.. Thank you!  But now im getting an error message in my schedule C that my depp alloed is too large.  It corrected it but flags as error and won't allow me to fix it

[DS30]

the deprecation amount might have to be adjusted for the months with no car. You are going to have to play around with the information on this part some.

[mshopper72]

Sch C line 50...I keep getting error message saying the amount is too much.  I've tried overriding the amount because it won't let me change it manually and it keeps saying its too high.  I even deleted the entire vehicle to start from scratch and it keeps going back to this.  I multiplied the business miles for 2017 xs .53 for the depreciation of this year and i calculated last years miles xs .23 for the total depreciation.  What am i doing wrong??  Please!!!

[DS30]

The only way to report the total loss in the value of your vehicle due to an accident would be to claim a casualty loss. (You can add the loan repayment amounts to the cost basis in your totaled vehicle. Otherwise the IRS will view the loan repayment amounts as nondeductible personal expenses).

You would be able to claim a casualty loss related to your vehicle for the difference between the actual loss (cost of the vehicle less any business depreciation taken on the vehicle) and any reimbursed insurance amount if your reimbursement was less than the actual loss. If no insurance, then the entire replacement cost will be considered the amount of the casualty loss.

A casualty loss is damage, destruction, or property loss resulting from one of these identifiable events:

• Sudden event -- swift, rather than gradual or progressive
• Unexpected event -- ordinarily unanticipated and unintended
• Unusual event -- not a day-to-day occurrence

So, you can only deduct losses not reimbursed or reimbursable by insurance or other means. You'll need to subtract $100 from each casualty loss of personal property. The total of your casualty and theft losses on personal property must be more than 10% of your adjusted gross income (AGI) in order for it to be deductible.

Here is a link for additional information about reporting your casualty loss: Casualties, Disasters and Theft and Casualty Deductions for Federal Income Tax

[alavalle]

No, just my personal vehicle.

[alavalle]

I did all this but TurboTax would not let me go on and claim my total loss of approximately $13.000.00.

[alavalle]

On November 24, 2020 I had an accident in the parking lot of Costco's. I was leaving the lot, driving about 5-10 miles per hour when the first thing I remember was opening my eyes to see my windshield was cracked, my head was bleeding badly, the air bag was deployed over the steering wheel and ambulances and police were all around, and my chest was very sore.  Somehow, I had hit a metal post beside the building and my car was totaled and the ambulance took me to the hospital where they did extensive testing to see if they could find the reason it happened.  No other cars were involved.  To this day, I have no idea what happened.  I think it may have been a stroke (TIA) or something that quickly caused the car to excelerate.  I had comprehensive and liability insurance but not collision so I only received salvage value of $1500.00.  My car was towed and I was charged $450.00 for towing and storage.  How do I get to deduct the loss on my tax return for 2020?  A. LaValle

[DawnC]

Unfortunately, personal casualty losses are no longer deductible on your federal return.  A qualified disaster loss is an individual’s casualty or theft loss of personal-use property that is attributable to a federally declared disaster, as well as from Hurricane Harvey, Tropical Storm Harvey, Hurricane Irma, Hurricane Maria, or from California wildfires in 2017 and January 2018. 

Between 2018 and 2025, you may only claim the casualty loss deduction when:

• Damages took place due to a federally declared disaster,
• The losses you incurred are not covered by insurance, and
• The total amount of casualty losses for the tax year exceed 10% of your AGI.

@alavalle