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vtg58
New Member

Can i claim casualty loss for a mechanic stupidity that blew engine on car and I owed 8900 on car loan which I paid off

 
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3 Replies
CathiM
New Member

Can i claim casualty loss for a mechanic stupidity that blew engine on car and I owed 8900 on car loan which I paid off

Yes, you can claim a casualty loss on a car that had a blown engine. However, you will be subject to the $100 casualty floor and 10% of AGI requirement.  That means you can't deduct the first $100 of loss and after that, only the amount of the loss exceeding 10% of your AGI can be deducted. You can deduct casualty losses on Schedule A.

According to the IRS: 

Deductible casualty losses can result from a variety of causes such as car accidents, earthquakes, floods, fire, hurricanes, or vandalism.

Casualties that are not deductible losses include progressive deterioration such as termite or moth damage. Also the loss of a personal belonging, like a ring that is dropped in the garbage disposal, is not deductible.

In TurboTax, jump to the entry area for casualty loss:

  1. Open your return.
    (To do this, sign in to TurboTax and select the blue 
    Take me to my return button.)
  2. Search for "casualty loss" and then click the "Jump to" link in the search results.
  3. On the Casualties and Thefts (or Stolen or Damaged Items) screen, select Yes.
  4. Answer the interview questions describing your event.
  5. When you complete the event and reach the Property Summary screen, you can enter any additional property losses by selecting the Add a Property button.

Related Information:


Can i claim casualty loss for a mechanic stupidity that blew engine on car and I owed 8900 on car loan which I paid off

In English please

Can i claim casualty loss for a mechanic stupidity that blew engine on car and I owed 8900 on car loan which I paid off

@dgamble88 You cannot claim a theft or casualty loss on a federal tax return since the tax laws changed for 2018 and beyond.

 

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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