Got motorcycle stolen, only had liablity insurance so this was not covered...I have been reading articles that said it is tax deductable if the amount exceeds 10 percent of my AGI. so if I make 50k and the loss is 10k....I should be able to tax deduct 5k...am I doing this right or is it even tax deductable?
2007-11-23 22:34:59 · 4 answers · asked by luckyc1423 2 in Business & Finance ➔ Taxes ➔ United States
I don't believe it's tax deductable. I've been riding my entire life and I've neve heard of anyone deducting or even trying to deduct it.
Sorry to hear about your loss. You should have had full coverage on the bike if it was worth that much.
EDIT: I've never heard of this. I guess it if works, it works. I still say you were not wise to have aonly liability on a bike of that value.
2007-11-23 22:43:36 · answer #1 · answered by penhead72 5 · 0⤊ 4⤋
A theft may be deducted on Schedule A if you itemize your deductions.
If your AGI is $50,000 and your loss is $10,000, first you take $100 from the loss and then you subtract 10% of your AGI:
$10,000 - $100 - $5,000 = $4,900.
This amount together with your state and local taxes may put you over the amount needed to itemize.
This would be the year to take any adjustments that reduce your AGI, such as a deductible IRA.
2007-11-24 00:08:18 · answer #2 · answered by ninasgramma 7 · 6⤊ 1⤋
If you itemize, you can deduct a portion of the loss as a casualty loss. You also have to subtract $100 in addition to 10% of your income.
If you don't itemize, you can't deduct it.
2007-11-24 02:35:56 · answer #3 · answered by Judy 7 · 2⤊ 1⤋
it has been a while but you are on the right track, I do believe it is an itemized deduction so you would still need other deductions to make it worthwile, I am sure there are other limits involved.
2007-11-23 22:48:05 · answer #4 · answered by sfcjoe4d 3 · 0⤊ 1⤋