Can I deduct damage from either of the two auto accidents we were the victim of this year?

[tbduvall]

I've read a lot of things that say you can, but I also read this "Form 4684 – Theft and Casualty Losses. Share: For tax years 2018 through 2025, you can no longer claim casualty and theft losses on personal property as itemized deductions, unless your claim is caused by a federally declared disaster."

In May, we were the victim of a hit and run.  The driver was finally located, but was destitute and uninsured.  We have liability only insurance so that would not cover the damage.  It is a 2004 car and the damage far exceeded the value of the car . . . it would be considered "totaled".  

In December, we were the victim of a different type of hit and run.  A valet, driving a customer's car, caused an accident that damaged our car, doing over $5000 in damage and it no longer runs.  The valet and the company left the scene without providing insurance information.  We finally figured out how to file a claim, but the company is self-insured and of course denied it.  Noone can figure out who regulates this type of company, it is very unlikely that they will change their mind, and suing would be prohibitively expensive.

Could someone clarify if these are somehow tax deductible?

[robtm]

I do not think  accident damages to your personal cars would be tax deductible unless they were somehow related to a business. You might consult with an accident attorney and see if they would take your case and you would only owe them a fee if they win your case and their fee would come out of the judgment. If they do not win your case then you would owe them nothing. Many attorneys work on this basis.

[Opus 17 · Accepted solution]

You are correct that for tax years 2018-2025, casualty losses are not tax deductible unless associated with a federally declared disaster, like a hurricane, flood, or wildfire.  There are no federal deductions for losses of this type on a personal vehicle.

You may still enter the loss in the casualty section, because some states may allow the deduction, and your federal entry will flow to your state return.  But you will have to answer that it was not caused by a federal disaster.  The amount of the casualty loss is the loss in value of the property.  The repair cost to restore the property to as-was condition can be used as the loss in value.  Or you need an appraisal.  For 2004 used car, you can determine the as-was value from Kelly Blue Book, Edmunds, or another reliable car valuation site.  If the car has no value after the accident, then the loss in value is equal to its original as-was value.