My car was totaled from Typhoon Merdock 09/17/2022, how would i put this on my tax return?

[Carl]

Personal losses are no longer deductible since 2018. So you have nothing to report or claim on a tax return.

[telleraklaq54]

what if my insurance bought it out?

[Carl]

You still have nothing to report on a tax return. Besides, if you got an insurance payoff, then you don't have a loss, as you were compensated by insurance for your loss. Even without insurance it wouldn't matter. Personal losses are not deductible.

[Opus 17]

Typhoon Merbok was a federally declared disaster, so the loss is allowed on your tax return.  There should be section for Casualty losses on the main Deductions page.

However, you can only claim your unreimbursed loss.  If you had insurance coverage, you could only claim your deductible, if you paid one.  If you didn't have insurance coverage, you can list the fair market value at the time (what the price for a used car of the same make, model, mileage and condition would have been on that day.)  If you had insurance coverage but didn't make a claim, your tax loss is limited to what your loss would have been if you had made an insurance claim.  If you got a partial reimbursement from the state of Alaska or FEMA, that also offsets your deductible loss. 

There is a loss deductible on your tax return of $100 per event and 10% of your adjusted gross income overall.   Then any allowable amount is an itemized deduction.  So you won't get any benefit if you take the standard deduction, and your loss will be limited even if you itemize.  (For example, if your income is $75,000 and your loss was $10,000, your loss deductibles will be $7,500 plus $100 so the actual itemized deduction would be $2,400, added to your other itemized deductions. 

Also note that if you deduct the loss now, but get reimbursed by Alaska or FEMA in the future, that reimbursement will be taxable income.  

[Opus 17]

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@telleraklaq54 wrote:

what if my insurance bought it out?

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If your insurance paid off the car, your only loss would be your insurance deductible.  For reasons already explained, you can list your out of pocket deductible as a tax loss, but you probably won't get an actual tax benefit.

(I assume here the insurance paid the fair market value for the car—what you could have sold it for as a used car with the same, make, model, mileage and condition before the storm.  If you want to argue that the car was worth more than the payout, that might represent a larger loss, but if you are audited, you will need ironclad proof that the insurance company lowballed you, if you can't convince the IRS auditor of the true value of the car, you will be assessed back taxes and penalties.)

[Mike9241]

from form 4684

Limitation on personal casualty and theft
losses. For tax years 2018 through 2025, if
you are an individual, casualty or theft losses of
personal-use property are deductible only if the
loss is attributable to a federally declared
disaster. Personal casualty and theft losses
attributable to a federally declared disaster are
subject to the $500 per casualty limitation.

the was a FEMA disater delcartion

Alaska Severe Storm, Flooding, and Landslides (DR-4672-AK)
Incident Period: September 15, 2022 - September 20, 2022
Major Disaster Declaration declared on September 23, 2022

however, to be eligible you must be located in an area to which the disaster declaration applies.

also to the extent covered by insurance you may have nothing to deduct

https://www.fema.gov/disaster/declarations?field_dv2_state_territory_tribal_value=AK&field_year_valu... 

if you want more info to see if your location qualifies  and you think you have a deductible loss contact FEMA. they will not provide tax help.

you would use form 4684 to report the loss.