We do not give tax advice. We are simply pointing you to information to aid in your research when filing your taxes after taking a loss in value after an auto accident.
Did you know that casualty losses are deductible from your income taxes?
In Topic 515 on the IRS’s website, it discusses the types of losses that can be claimed on your income tax.
Diminished value is specifically listed!
So you’ve been doing all this research on diminished value, and you’ve figured out that the at fault party’s insurance company should pay you for the lost value your car has suffered, right? The only problem is that you got a diminished value claim denial by the insurance company. Although it may make you want to rip your hair out, don’t get discouraged! It is very common for insurance carriers to deny diminished value claims as a tactic to weed out those victims who will be frustrated enough to just give up on their claim. They use this tactic because the sad fact is that most people DO give up. You know why? Forcing an insurance company to be fair is HARD! Also, there is generally nobody to help accident victims with their small value property damage claims and insurance companies know it. So where does that leave you? Is there any hope of recovering your lost value? Read on my friend, read on. . . . (more…)