Wreck Police Cars
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US $9.99
NEW HAVEN: Police Chase Ends with Arrest, Wreck
Connecticut authorities say a high-speed police chase that began in Hamden ended with a multicar wreck in New Haven and the arrest of a 33-year-old man.
I was in a car wreck in 2008, car got totaled. What documents I need to have to get tax deduction?
I got the police report of the accident and then sold the car to junk yard for 100 bucks (cash, no receipt). Then returned the license plate to DMV office, have their receipt. No insurance documents, as I only had liability insurance. I guess I can pull over fair market value of car from KBB. Can I go ahead and apply for loss deduction?
You have a casualty loss which may or may not be deduct-
ible depending on your situation. Are you filing Schedule A to
itemize your deductions already? The casualty will need to
exceed 10% of your gross income for it to be deductible on
Schedule A, and then your total deductions on Schedule A
need to exceed the Standard Deduction for your filing status.
The amount of the loss you can claim is calculated by compar-
ing the original cost of the car with the fair market value at the
time of the accident and taking the lower of the 2 numbers (I'm
thinking almost surely the FMV is lower)-the loss is then the
difference between that number (FMV) and the $100 you got for
the car from the junk yard. That number must be over 10% of
your 2008 income to qualify.
In other words, the IRS makes it very difficult for folks to claim
Casualty/Theft deductions.
Robyn M.
Enrolled Agent
Master Tax Advisor
**This advice was prepared based on our understanding
of the tax law in effect at the time it was written as it applies
to the facts that you provided