My wife does contractor work (gets a 1099-misc). She got in a car accident returning from an appointment. Can we claim our insurance deductible as an expense?

[Bsch4477]

The accident would be irrelevant. But she can deduct auto insurance coverage if she is using the auto in her business as a pro rata expense if also used personally. 

[sm132528]

where do you add the insurance part at.

[Bsch4477]

Deduct under auto expenses on Sch C if you deduct a percentage of actual expenses as opposed to deducting mileage 

[DaveF1006]

I researched this issue in a variety of IRS sources and i could not find a definitive answer. As a tax professional when we are unable find a definitive answer, we have to take a conservative approach in our advice as outlined by Circular 230 procedures. 

I will say no to this answer and not claim this as a business or car expense. i know that someone suggested to enter this as an auto expense but I highly would discourage you from doing this.  All of references i have been able to find all claim that you should report this as a itemized deduction under medical expenses in your personal return.

[Bsch4477]

To be clear, I am suggesting that deduction of insurance coverage premiums for percentage of business use of the auto is legitimate. I am not suggesting a deduction of the insurance deductible.