Need help on tax deduction on a totaled car lost in a accident.

[hanw]

My personal car was totaled in an accident at the beginning of last year, 2022. Unfortunately i didn't buy a collision coverage for my car. I was no fault in this car accident and based on michigan's no-fault law, the insurance company of other guy who is at fault gave me a check of $3000 which is the highest sympathy amount in michigan.(They file the claim.)

I bought a new camry afterwards and can i get any tax deduction. How to file it with turbotax? Thanks.

[Bsch4477]

For tax years 2018 through 2025, if you are an individual, losses of personal-use property from fire, storm, shipwreck, or other casualty, or theft are deductible only if the loss is attributable to a federally declared disaster. 

[Opus 17]

Your loss is not deductible.

Assuming the payment was less than the adjusted cost basis of the car**, it is not taxable income.

(For a personal vehicle never used in business, your adjusted cost basis is what you paid for the car.  If you used the car in business (such as ride sharing), you must reduce your cost basis by the amount of depreciation you claimed.  We can give you more information if you provide details.)