Question

Total loss

Forum|Forum|1 year ago
March 31, 2025
1 reply
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I was in a car accident last year and my insurance deemed it a total loss (I was not at fault and the other person didn’t have insurance) so my insurance bought it off me and I used that money for a down payment on a truck. Could I claim this as a loss?

Not A Product Question

M

MindyB

Unfortunately, unless your vehicle was used for business, the loss on the vehicle is a personal loss and is not deductible for tax purposes.

Previously, a deduction was available for personal and casualty losses. However, personal casualty and theft losses sustained in a tax year beginning after 2017 are not deductible unless they are attributable to a federally declared disaster.