Question
Tax write off for car accident
I was in a car accident with someone who did not have insurance. He caused about $10,000 in damage to the rental I was driving. My insurance wouldn't cover the whole amount so I'm left paying $8,500 to the rental company personally. I intend to write the $8,500 off as a business expense. My question is do I write it off in the tax year in which I am giving the bill from the rental company, or the tax year in which I actually pay the $8,500 to the rental company
