Posted on March 19, 2010.
Can I deduct the repair of my vehicle for an accident during a business trip as a business expense? In respect of costs Trevel business expenses other States TurboTax automotive (parts, repairs, tires, lubricants, washing) can all be deducted. The accident occurred while driving my personal vehicle that I use for work, while driving for my work.
It is an insurance claim, so I can at least deduct my deductible and towing?
After adjusting for insurance, your insurance reimbursement down your base. What you spent to repair your database has increased. Base is part of the depreciation costs are not everyday.
So, no, you do not receive a deduction of towing or deductible. (Form 4684 will not give you much of either because I doubt they are more than 10% of your AGI for the year.)
Do you use the standard mileage rate (which excludes the deduction here), or the actual operating costs and business records and private use for your vehicle? An accident does not appear to fall under the definition of the IRS business expense ordinary and necessary.
I suppose you must complete Form 4684 and see if it is deductible on line 20 in Appendix A, since that is where it would normally go to your own vehicle.
You can always ask the IRS and see what they say. What are your chances of an audit?
