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Are cars considered assets?

Of course.

Is there some way I can use the fact that my $8000 car is now worth $1000 if I were to resell it?

I assume you mean to reduce your taxes and, as usual, the answer is "maybe."

It would be neat if that "capital loss" could offset some "capital gains" I have in stocks but for some reason I'm guessing they aren't really the same thing. ;)

Not necessarily.

Is there anything you can claim once your car no longer has value?

If the car was an investment property and the market for that particular classic plummeted, you'd have a capital loss.

If the car was used in business, you should have been depreciating it (or taking the mileage deduction) all along.

If the car was for personal use and got stolen or totaled in an accident, you have a nonbusiness casualty or theft loss possibly deductible on Schedule A.

If the poor puppy just wore out, nothing. You also don't get a deduction when a sock can no longer be darned and must go into the dustbin of history.

Phil
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