2007-01-24 10:54:50 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Insurance & Registration
No, they are actually considered losses. In a case where your insurance company didn't pay you you can actually decuct the value of the car as a financial loss (see a tax advisor for details on this). If the insurance company did pay you for it then it's just a wash because they're paying you for your losses, it's not income. Even physical injuries are considered losses and the insurance company is paying you for your loss in productivity or life style etc.
2007-01-24 11:02:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You should check with a tax professional. I just did my taxes and there is a question the IRS asks, specifically, if you've received any insurance settlements. Whether it's specific to a bodily injury claim are not is something you need to further investigate. My understanding is from my personal injury attorney is they are.
2007-01-24 16:22:09 · answer #2 · answered by bundysmom 6 · 0⤊ 0⤋
No. Its a compensation for a loss. You didn't make anything, ie income.
2007-01-24 11:02:31 · answer #3 · answered by da_hammerhead 6 · 0⤊ 0⤋
No, income is taxed, not losses.
2007-01-24 12:02:54 · answer #4 · answered by oklatom 7 · 0⤊ 0⤋
No
2007-01-24 11:01:12 · answer #5 · answered by jimbobb1 4 · 0⤊ 0⤋