Unless you used your car for your self-employment business, you don't report it on your tax return at all. If this was a business use vehicle follow the directions below to report the loss.
As of 2017, you can't deduct a personal loss unless it occurred as part of a federally declared disaster.
If it was a business use vehicle, you can claim part of your loss as part of your itemized deductions. If your itemized deductions are not more than your standard deduction, it won't affect your taxes.
This is how to enter a loss on your business use vehicle:
- Open you tax return and select Federal from the left side menu.
- Select Deductions & Credits.
- Scroll down to Other Deductions and Credits and expand the section.
- Click Start or Revisit to the right of Disasters, theft, and other property loss or damage.
- Answer the first question Yes.
- Enter a description of your car, the date of the accident and check the box next to Income-Producing Property (e.g. Business property, Investment property), click Continue.
- Use the following screens to report the details of the loss.
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