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How can you claim your car’s damage as a tax deduction?

Car accidents in Los Angeles can lead to severe physical and mental injuries to your person. Car accidents can also lead to you missing work, and losing income during the time you are treating your injuries. But car accidents that occur in Los Angeles, also usually lead to your vehicle being damaged. Clients often ask our car accident attorneys what the tax implications of a car accident are, and how they can claim deductions, if any. Tax laws in the United States, California and Los Angeles are complicated and can be difficult to understand. Further, finding the tax code and forms that apply to your situation can be like looking for a needle in a haystack.

If you are trying to figure out the tax implications of your car accident, keep the following in mind. If you have automobile insurance, your insurance company can cover the cost of the repair to your vehicle, or will determine that the vehicle has been “totaled.” If your insurance company determines that your car has been “totaled” your vehicle is considered to be a complete loss and you will be paid a cash value for your car. Nonetheless, property damage costs can be claimed as a form of damages from the other drivers involved in the car accident. Therefore you may be able to recover the costs of repair to your vehicle from the other individuals involved in the accident.

In the event that your vehicle repairs costs exceed what your insurance company will reimburse you for, or if your car has been deemed “totaled,” often, you can claim these extra costs as tax deductions. Determining how to claim a tax deduction from your insurer for your vehicle repairs can be a complex and time consuming process. To be eligible for a tax deduction, you must not have been at fault. If you want to claim a tax deduction for your vehicle repairs, be sure to keep a an organized record of all repair bills and information pertaining to your car accident, including all communications you have had with your insurance company.

The car accident attorneys in our Los Angeles office can help you with this process. The car accident lawyers at California Attorney Group deal with car accident cases, and tax related issues on a daily basis. If you have questions regarding this process, do not hesitate to contact us immediately, we will aggressively fight for your legal rights and peruse the most favorable settlement you may be entitled to. Our friendly LA car accident lawyers can be reached toll free at 1-800-337-8547.