Calling all CPA's - Porsche-related tax problem

[Rick Lee]

I was always under the impression that uninsured losses were tax deductible if they exceeded 2% of one's AGI. But I assumed that meant I could simply take whatever amount of an accident repair bill that insur. didn't cover and deduct that from my AGI, much like mortgage interest.

My 993 track insurance had a $6750 deductible and another $3250 or so in other stuff insur. didn't cover. Total repair bill was around $26k. So there's $11k I paid out of pocket in 2005 for that one accident. The dear collision with the SC cost me a $500 deductible. And another mishap with the 993 last summer cost me a $500 deductible (this was on the street). So I believed I had a phat $12k deduction coming my way.

I got the Tax Cut federal and state package and started on it last week. The fed. section about uninsured losses asks for the cost/basis of the car, the repair total, amount paid by insurance and the pre and post accident value of the vehicle. I have a hard time stating that my 993's cost/basis is around $80k, but that's what the track and street insurance companies and I have into it. SC is tough to estimate too.

Am I somehow skipping the tax form that just lets me deduct whatever loss insurance didn't cover? Please help! Thanks.

[Rick Lee]

Anyone? Buehler? Orange whip?

[EdT82SC]

You must be thinking of out-of-pocket job-related expenses over 2% being tax deductible. That's the closest thing I can think of that would apply. If it were medical then any medical expenses over 7.5% of income are dedulctible, and this can include your deductables, co-pays, weight loss program, gym membership (if you get a letter from your doctor saying you need to exercise), etc., but not racing accidents.

Sorry Rick. If you figure out a way to make your track car into a job-related expense please let us know.

[Rick Lee]

I'm only talking about deducting an uninsured loss - not depreciation or upgrades. Tax Cut asks verbatim "Did you have any uninsured losses?".

[VaSteve]

Rick is basically talking about casualty losses. This kind of loss is subject to a $100 cut for starters and then anything over 10% of your AGI.

All the tax CPAs are busy now. You have to be patient or deal with us second stringers.