Vehicle deduction

[Belva333j]

Hello,

I have a tax client who bought a $35,000 vehicle for his business. He did not have it insured yet, and  his daughter took it and got into an accident and totaled the vehicle. What portion is deductible on his sole proprietorship return? Can I claim the whole thing as a loss?

[Mike9241]

did the daughter have insurance? This may be a question of law in your state as to whether your client needs to file suit against his daughter. 

others may have a different opinion so watch for their comments

[Belva333j]

She is a just-turned 16 year-old girl.  The car had not been put on insurance yet. (He said something about needing to give the insurance company more information)

[Mike9241]

I'm not a lawyer so you need to find out if you need to proceed against your daughter. The IRS generally does not like deductions when there is a source for reimbursement that the taxpayer ignores. 

as I stated previously, see what others say. 

In any case since the daughter was driving that says business use was not 100% so that would also limit any deduction your client is entitled to. Personal casualty losses are not deductible. 

[xmasbaby0]

"I have a tax client "

If you are a paid tax preparer then you should be asking your questions on the site for professionals.

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