Post: Damages to Leased Vehicle

Posted by GregM on 10/28/08

In section A form 4684, Casualties & Thefts, I claimed a
deduction due to Reduction in fair market value (FMV) of a
car I had in 2006 because of each major accident it was in -
it was a lease vehicle but I was planning to purchase it
after the lease was up.

In my Tax audit, the Auditor said that I cannot claim the
reduction in value of the vehicle because it was a lease.
The car was totaled in the next tax year so I obviously did
not have the chance to purchase it anymore.

Is it true that I cannot claim the loss in FMV of the
vehicle given that I was planning to purchase it later on?

Posts on this thread, including this one

Damages to Leased Vehicle, 10/28/08, by GregM.

Re: Damages to Leased Vehicle, 11/20/08, by Title to property is important.