Can I write off as a loss the cost of an accident that was 18% of my total income in a rented truck to move business equipment which was not covered by insurance?

[Bjukeman]

I rented a large truck to move pool tables for my business. I had an accident that was not covered by insurance. Where can I enter the total repairs to the truck and the city bus I hit, for the loss, which was 18% of my total income?

[MichaelL1 · Accepted solution]

If you were actively pursuing making money and damaged some property the costs not covered by insurance is a deductible business expense.

It must have been paid in 2018, and you have records for this.

List it as a Misc Expenses for damages paid while moving work equipment on your Sch C.

Due to the large nature of it, just keep good records should IRS ask for verification a year or two from now.

If you got a ticket or fine that is not deductible.

[Bjukeman]

The equipment (coin-op pool tables) were given to me free, I moved them to be stored, and sold or operated later. So paying to store them until placed or sold is actively pursuing making money? No fines, I did rent the truck, where do I expense vehicle rent, I was not moving my business, only some equipment. The section I thought it goes in says not for vehicles.