Can I claim a deduction for the value of my Camry that was totalled after a hit and run?

Go back to [ turbo tax ] Forum

syk Posts:1 2006-03-20 21:44:01	Can I claim a deduction for the value of my Camry that was totalled after a hit and run?
The 1992 Camry only had liability insurance so the insurance company didn't pay. It was parked on the street. There was a police report. The car was worth almost $3,000. Turbo tax described it only has theft or disaster. I itemize each year, with mort int + charitable deductions. I just found out from Kelly Blue Book that the car was worth $3,300 (good condition, not excellent). I got $200 from a junk yard that took the car.

syk

Posts:1
2006-03-20 21:44:01

Can I claim a deduction for the value of my Camry that was totalled after a hit and run?

The 1992 Camry only had liability insurance so the insurance company didn't pay. It was parked on the street. There was a police report. The car was worth almost $3,000. Turbo tax described it only has theft or disaster.
I itemize each year, with mort int + charitable deductions. I just found out from Kelly Blue Book that the car was worth $3,300 (good condition, not excellent). I got $200 from a junk yard that took the car.

n0h0pe Posts:3 2006-03-20 21:49:21
n0h0pe Posts:3 2006-03-20 21:49:21	No, cannot be claimed. This is what full coverage is for.

BeautyFromWithin Posts:1 2006-03-20 21:51:58
The deduction is for a casualty/theft loss. And a PORTION of the $3000 may be deductible. You need to find out what the actual Fair Market Value of the car was (use a blue-book, not your estimate). Subtract any reimbursement your recieved. And then subtract $100. This is the amount you can claim as a deduction. However, in order to take the deduction, you have to be itemizing your tax return. Combined with the car loss, do you have paid medical bills, mortgage interest, personal property tax, and/or chartity contributions that add up to more than $5000 (if you're single, $7500 for HOH, or $10000 if you're married)? If not, it's not beneficial for you to claim the loss. And Jeff is right. I forgot about the 10% of AGI. Guess I should look next time before answering from memory =) **As a side note, full coverage is to make sure you are reimbursed dollar for dollar for your loss. It has nothing to do with a deduction on your federal tax return.

BeautyFromWithin

Posts:1
2006-03-20 21:51:58

The deduction is for a casualty/theft loss. And a PORTION of the $3000 may be deductible. You need to find out what the actual Fair Market Value of the car was (use a blue-book, not your estimate). Subtract any reimbursement your recieved. And then subtract $100. This is the amount you can claim as a deduction.

However, in order to take the deduction, you have to be itemizing your tax return. Combined with the car loss, do you have paid medical bills, mortgage interest, personal property tax, and/or chartity contributions that add up to more than $5000 (if you're single, $7500 for HOH, or $10000 if you're married)?

If not, it's not beneficial for you to claim the loss.

And Jeff is right. I forgot about the 10% of AGI. Guess I should look next time before answering from memory =)

**As a side note, full coverage is to make sure you are reimbursed dollar for dollar for your loss. It has nothing to do with a deduction on your federal tax return.

jeff410 Posts:6 2006-03-21 00:47:08
jeff410 Posts:6 2006-03-21 00:47:08	BeautyFromWi is correct. However after you deduct the $100 you need to reduce that amount again by 10 percent of your AGI. You have to itemize on Schedule A, and use form 4684 for the car.

Pages [0]