Tax deduction

[Nonameavailable]

I was evacuating from my home during Milton.  My auto, while driving on the highway at 10 mph, due to the extreme traffic, burned its transmission.  My car, a 2010 Nissan, with 60,000 miles that had been maintained and had no trans issues prior, was not repairable.  I had to rent a car to evacuate and then I had to buy a car from the dealer that had my car in order to get back home after the hurricane.  Is the loss of my original car deductible at all?  Are the taxes on the purchase of the replacement car deductible?

[VictoriaD75]

Hurricane Milton resulted in a federally declared disaster area. Per the IRS, if the loss is caused by a federally declared disaster, you may deduct personal casualty losses relating to your home, household items, and vehicles on your federal income tax return. However, you cannot deduct any amounts reimbursed by insurance. 

You would have to prove that the damage to the vehicle was a direct result of the hurricane. A casualty loss can result from the damage, destruction, or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake, or volcanic eruption. A casualty doesn't include normal wear and tear or progressive deterioration. 

The sales tax may be deductible if you itemize. Taxpayers are allowed a deduction for state & local income taxes or state & local sales tax, but not both. If you opt to deduct sales tax, you can take the general sales tax deduction based on your state rate. In addition, you will be asked if you made any large purchases for the year. There, you can enter the amount of sales tax paid for the car.

Casualty Losses

Casualty, disaster, and theft losses

Help for victims of Hurricane Milton

@Nonameavailable