Skip to main content
March 8, 2025
Question

Tractor was damaged, can I deduct the deductible

  • March 8, 2025
  • 1 reply
  • 0 views

Where do I put the amount of the deductible for my loss? Is this considered maintenance or repairs? 

    1 reply

    March 8, 2025

    It depends. If you replaced the tractor then this could be added to the cost of the new one. If you did not replace the tractor then you would have a taxable event, considered as a sale. The insurance proceeds (sales price) less the cost of the original tractor, plus the depreciation would be the net profit or loss.  This can be handled in the asset for the tractor.

     

    Please update with additional details and we can provide more guidance.

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"