Is there any sort of "stupid tax break?"?

Question

I was wondering if there is any way to get some money back on a stupid financial decision my hubby made. He cosigned for a brand new car for his unstable 29 year old brother at 16.325% interest. His brother had the car for 5 months, paid only one payment and trashed the car. We have had to pay the 4 mos he was behind to keep it out of repo and we will have to pay to repair the damages they did to it before we can sell it and then we will likely have to pay the difference between what it will sell for and the loan payoff. So my question is this, can we get some sort of tax break for being stupid? Claim it as some sort of deduction? Thank you.

Sigh...that's what I was afraid of. But thanks anyway.

Answer 1

Check out whether you (not hubby) might be able to file an injured/innocent spouse form. Won't apply if you and hubby jointly co-signed.

Also beware of any cancellation of debt notice you may receive from car co. if they forgive any of the loan--it becomes taxable income, and gets reported to the IRS.

Pay to have your taxes done professionally this year.

Answer 2

Have your husbad get a second job to pay off this debt not you. I did some stupid as well like have a $17,000 gambling debt (all credit card advances) that I have paying off since May 2005. Guess what? My wife doesn't help me pay it off either. I have been paying since May 2005 and my last payment is next December (2008). Something wrong with a 29 year old man needing a co-signer.

Answer 3

Nope, you are stuck. And you right - there's definitely something wrong when a 29-year old needs a cosigner for an auto loan.

Answer 4

If the government gave tax breaks for being stupid, it would go bankrupt just by the actions of its own people, let alone the rest of us.

Sorry, no break for you here.

Answer 5

no just a hard earned lesson