Business loss on vehicle they leased to another company?

Forum|Forum|2 years ago
September 18, 2023
1 reply
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How does a business claim a loss on a vehicle they leased to another company? The other company wrecked it and took the money and spent it. It was still drivable so they drove it until they blew up the motor. It will cost more money than the truck is probably worth to repair it. If I sued and got a judgement they have no money, which render a judgement useless.

Not A Product Question

Mike9241

check with your insurance agency. you might have coverage that you don't know about. the IRS will not let you claim a deduction for that part of a business loss that is covered by insurance.

nhholleyAuthor

He had the truck insured. My insurance does not cover the leased vehicle. He spent the insurance money for the wreck and since it was still drivable kept driving it until he blew up the motor. He left it sitting and stopped making lease payments. Cost of repair is now more than the vehicle would sell for. Can this be claimed as a loss somewhere?

AmeliesUncle

@nhholley wrote:
Cost of repair is now more than the vehicle would sell for.

Does that mean you still own the vehicle? You might not be able to do anything until you sell (or officially abandon) the vehicle.

As a side note, if you ever lease out another vehicle, you may consider on requiring the insurance payments to go to YOU rather than the other person.