BobKamman
Level 15
06-04-2023
07:06 PM
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Without delving into the case too deeply, it looks like people complained that they weren't paid enough for their claims. And so the company agreed to pay them some more. This raises two questions:
1) Was anything claimed as a casualty loss on their tax return? If so, the loss would have to be reduced by any insurance payable. The more insurance proceeds they collect, the less the loss they can deduct. But not many people claim casualty losses these days.
2) Except, was the vehicle used in a business, so the repair costs were deducted and now some of them have been reimbursed?
Doesn't look like a question that allows for a "one size fits all" answer.