Question

Sonia's car was completely destroyed in an accident that was her fault. her loss was $8,500 and her insurance company reimbursed her $6,500. what amount of casualty loss can sonia claim on her return (before deduction limitations)

Answer 1

I would say that the amount she can claim on her income tax would be $8500-6500 or $2000 ie the amount of loss-amount she was reimbuunrsed or her net loss and this would then form her actual loss for income tax purposes but she probably couldn't claim this unless it was a business expense the use or partial use of her car for her business.