Question:
Hi, I bought a car in 2016 for about $25000 and sold it recently for about $15,000. Am I allowed to deduct this loss from my overall “ma’aserable” income for this year?
Answer:
Hello,
Thank you for your question. You are not allowed to deduct the $10,000 “loss”, since it is really no loss at all. You bought and received a $25,000 car, enjoyed it, and now it is of course worth less than the amount that you paid for it. You did not “lose” the money- you “used” the money.
All the best
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