Episode Details
Back to Episodes
Casualty Losses: Why Most Car Accidents Aren’t Deductible
Description
Had a major loss from an accident and wondering if it’s deductible? Dr. Friday explains why, under current law, most non-disaster losses can’t go on your tax return.
Transcript
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Talking about losses, client came in, they had some losses of a vehicle due to accidents. It was not to do with a federal disaster. And they were sure that they should be able to write off the losses of these vehicles because, well, they lost them.
The answer is no. So keep in mind, nowadays, under the current tax law, at one point there was casualty loss and disaster loss available on your taxes—years ago, back in the 2000s, 2007, 2008.
Now we have to have a federal disaster to be able to claim any loss of property. If you need a question, 615-367-0819.
You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.