Okay we bought an RV, due to a manufacturer problem it wrecked while taking vacation. We had already made 5 payments on it at the time. The insurance company paid it off but our question is can claim it at a loss?
Thanks in advance for your answers.
The insurance company paid off the balance but we did not get reimbursed for the first 5 payments. We only had it 5 months when a manufacturer error caused it to crash. Luckily we did not hurt.
What is AGI?
By car insurance | 4 Comments
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March 7, 2010 @ 5:26 am
Only uninsured casualty losses can be claimed. Since the insurance company paid the claim only your deductible would be eligible. Due to the way that casualty loss deductions are calculated it’s highly unlikely you’d have anything to claim.
If the amount of your deductible, less $100, less 10% of your AGI is still a positive number, THAT is what you can deduct.
March 7, 2010 @ 5:41 am
Not unless you used it for a business. Then it would go under disposal, selling or abandonment. The IRS would then use depreciation tables to determine if there was a deduction. If you had a business, the vehicle would have had to have been capitalized. That means the IRS doesn’t allow you to take the depreciation all at once. You have to spread it out. I was looking at the IRS website and couldn’t find anything to my satisfaction. Not sure if you still spread depreciation on an automobile over 5 years, or whether it is longer now. Then we are talking about only 5 / 12 of what you would have been allowed to take, since you had the vehicle five months. Anyway, it’s useless to ask which quarter you bought the vehicle, and a couple other questions, because,if you had a business, I am sure you have mentioned it.
March 7, 2010 @ 5:53 am
You can’t claim a casualty loss on your taxes for something that was reimbursed.
If the reimbursement was less than the fair market value of the van at the time it was wrecked, and you itemize, then you might be able to take a casualty loss for part of the amount of FMV not reimbursed. If the FMV was reimbursed to you by the insurance company, then you have no deduction.
March 7, 2010 @ 5:54 am
If the 5 payments were less than 10% of your AGI, you are out of luck.