BG Accounting

[Zigma]

My car was stolen shortly after Christmas, The 27th to be exact .

Anyway, I'm finally getting around to do my taxes. Should I be including this as a loss, theft or something? The car was financed and insurance paid it off but I still had to pay a deductible, small, $500.

I am W2, my wife is 1099. Do I qualify for some type of credit? I'm trying to make sure I don't overpay in my taxes. The stupid people at H & R Block are saying its not worth putting it as it will hurt me. How?! I bet they aren't even CPA...and that is why I went there in the first place..

Last year, I filed my own taxes and did pretty good, ended up not owning as much as I thought but this year with a 1099, and this car cloud hanging over, I'm left only but to ask questions and hope for sound answers

[archibaldcrane]

I'm not an accountant by any means, but I don't think there's any sort of write-off for personal losses from stolen property.

I know you can write off sales tax spent on purchasing a new car...

[Titanss]

2 bitches stole my civic when I was drunk and went into Wal-Mart last year.. true story

[Colenzo]

no way

[Klutz]

2 bitches stole my civic when I was drunk and went into Wal-Mart last year.. true story

My bad, thought it was my car.

[Zigma]

And depreciated value is also a nadda? My wife is 1099, so isn't this like a loss and we should get some type of deductible or credit etc? She used it for transportation sometimes.

[Ervanii]

My car was stolen shortly after Christmas, The 27th to be exact .

Anyway, I'm finally getting around to do my taxes. Should I be including this as a loss, theft or something? The car was financed and insurance paid it off but I still had to pay a deductible, small, $500.

I am W2, my wife is 1099. Do I qualify for some type of credit? I'm trying to make sure I don't overpay in my taxes. The stupid people at H & R Block are saying its not worth putting it as it will hurt me. How?! I bet they aren't even CPA...and that is why I went there in the first place..

Last year, I filed my own taxes and did pretty good, ended up not owning as much as I thought but this year with a 1099, and this car cloud hanging over, I'm left only but to ask questions and hope for sound answers

Hi Sigma, Casualty and Theft losses are on the Schedule A, so unless you itemize, you can't use it. Also, the loss has to be greater than 10% of your AGI, which is unlikely since the insurance covered the loss and you only were actually out $500.

As far as the 1099, it depends on what it was, but most likely she is going to have to use a schedule C and show this as a business. She needs to take a look at the expenses related to her job and be sure to include those. Remember that when you are self employed you end up paying the self employment tax, which is FICA and social security.

I have never met an H&R block person that is a CPA, but then again, I've corrected many CPA prepared returns in the two years I have done taxes.

[Zigma]

Hi Sigma, Casualty and Theft losses are on the Schedule A, so unless you itemize, you can't use it. Also, the loss has to be greater than 10% of your AGI, which is unlikely since the insurance covered the loss and you only were actually out $500.

As far as the 1099, it depends on what it was, but most likely she is going to have to use a schedule C and show this as a business. She needs to take a look at the expenses related to her job and be sure to include those. Remember that when you are self employed you end up paying the self employment tax, which is FICA and social security.

I have never met an H&R block person that is a CPA, but then again, I've corrected many CPA prepared returns in the two years I have done taxes.

Thank you for your answer. My wife had a few items in the car that were stolen. Based on the items, they could be included as it fits her line of profession. Could those be itemized even though we did not report them stolen? I think the answer is no. Can I PM you?

[Zigma]

no wait... I won't PM you... 4 post.. I don't feel like getting audited :X

[archibaldcrane]

Unless your itemized deductions are going to be more than your standard deduction, just forget about the car.

[Sqwunk]

H&R Block people are trained through H&R block in their program for teaching their employee's how to do taxes. Someone that is a CPA would have to be pretty desperate to work there.

That's the way I've seen it at least. I did take taxes in college but honestly it's so damn confusing I couldn't tell you if it's worth it or not to claim it, but the 10% of your AGI statement does sound familiar so it probably isn't worth it. But don't take my word for it, you could always try TurboTax to get the answer.

[Zigma]

Unless your itemized deductions are going to be more than your standard deduction, just forget about the car.

Well that makes sense... Thanks.

[Ervanii]

no wait... I won't PM you... 4 post.. I don't feel like getting audited :X

Sorry, I'm just a lurker, been reading BG for years though!

[Dolmen]

Ervanii is correct. Unfortunately casualty losses never really work out unless they were insanely expensive. Did you purchase another car in 2009 to replace the stolen one? You can now deduct the sales tax on a new or used car purchase, even if you don't itemize.

As for H&R Block... My CPA firm has had to fix so many errors with H&R Block returns. The IRS has new regulations in place that is going to make H&R Block's life hell, thank goodness. My firm has a preparer and a reviewer, while no one reviews at H&R. The employees at H&R are paid on a commission basis, so it is in their best interest to finish your return as quickly as possible. You get what you pay for, and H&R really isn't worth their fee.

[Ervanii]

Yes, it amazes me that H&R Block doesn't use a checker. I work for a small tax prep office and we have a couple of dedicated checkers and I think it makes all the difference.

[Zigma]

Yeah, they are trash. I was highly upset with the service when I went, I won't be returning to complete/file them.

I am not a nubbie to taxes and know how some of it works but if I have a question and I'm going to a place that is supposely reputable, I don't expect the person who's doing my shit to get up and ask for someone, or bust out a book that pretty much says "Taxes for dummies" in front of me if you know what I'm sayin' lol.