Writing off a car accident driving doordash

[kevin19801980]

Last year I was in a car accident while driving a rental car. I rented the car with the intention of using it to drive DoorDash, GrubHub and Uber eats, etc. When I was in the accident, I had not done any deliveries that day, but I had done them in the days prior. The guy that hit me didn’t have insurance, and my insurance did not cover all the damage.  I am responsible for paying about $8000 in damages To the rental agency.  I made my first payment to cover the damages to the car this year, and will have to continue paying for the next two years. I have not driven or earned any 1099 income since last year.

My question is, can I write off the damages? Do I write them off in the year The accident happened. Or do I write them off slowly As I make payments?

[Carl]

Since you were not using the vehicle in your business to produce income at the time of the accident (or even on the day of the accident) you have nothing to claim on a tax return unfortunately. It's considered a personal loss, and personal losses are not deductible on a federal tax return.