NetNews Usenet Archive 1992 #31/NN_1992_31.iso/spool/misc/taxes/3882

Internet Message Format | 1992-12-23 | 1.8 KB

Path: sparky!uunet!think.com!news!mincy
From: [e-mail] (Jeffrey Mincy)
Newsgroups: misc.taxes
Subject: Re: Loss from Flood Damage
Date: 23 Dec 92 17:04:41
Organization: Thinking Machines Corporation, Cambridge MA, USA
Lines: 31
Distribution: usa
Message-ID: <[e-mail]>
References: <[e-mail]>
NNTP-Posting-Host: mjolnir.think.com
In-reply-to: [e-mail]'s message of Wed, 23 Dec 1992 14:46:14 GMT

In article <[e-mail]> [e-mail] (david.boyle) writes:

   From: [e-mail] (david.boyle)
   Date: Wed, 23 Dec 1992 14:46:14 GMT

   I have a car which was damaged in a flood, declared totalled by the
   insurance company.  I am awaiting their settlement figure.  How can
   this be used as a loss for tax purposes?  If they say the car is worth
   x and I believe it is worth more (either through comparable adds or
   used car prices), can I declare the difference as a loss?  What docs
   are required.  Any thing I forgot or am missing?  Thanks......Dave

If you believe that your car is worth more then you should tell the
insurance company.  You will have better odds if you can substantiate
your belief.  I've done this a couple of times.

Yes, you can deduct the difference between the value of car and what
you receive from the insurance company as a causality loss.

However, to deduct a causality loss you file the causality form, and then
carry that number onto the itemized deductions form.  You reduce the
causality loss by 10% (I think) of your adjusted gross and then by $100
(I think).  I havent looked at the appropriate form for a long time.

Basically, It is easier to deal with the insurance company.

-jeff
--

-- jeff
[e-mail]