I won a judgment in small claims court. Debtor filed bankruptcy this month. Can I claim this a loss on my 2013 income taxes?

Asked over 1 year ago - Los Angeles, CA

The amount of judgment is $5,000. It is for an automobile which was totaled and the debtor did not have auto insurance and I did not have uninsured motorist insurance.

Attorney answers (4)

  1. Alan D. Walton

    Pro

    Contributor Level 19

    8

    Lawyers agree

    Answered . Yes, but only to the extent the amount written off (less salvage value and less $100), exceeds 10% of your adjusted gross income.

  2. Dorothy G Bunce

    Pro

    Contributor Level 20

    7

    Lawyers agree

    Answered . I would assume you could, but this is really a tax question & I am moving it to that area so that the tax experts can help you. Hope this perspective helps!

  3. Samuel R Walker

    Pro

    Contributor Level 10

    4

    Lawyers agree

    Answered . You can deduct a loss for a business in the year it is worthless. For personal expenses it is called a casualty loss and is a deductible based on some limitations.

  4. Diane L Gruber

    Pro

    Contributor Level 18

    5

    Lawyers agree

    Answered . Ask your tax preparer.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more

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