I received a 1099-Misc from CARFAX in the amount of $5500. I received this money because CARFAX failed to report a major accident on a used car I purchased. If I had known this prior to me purchasing the car, I may not have purchased the car.
I have spent roughly $3000 in repairs to the car, possibly due to the accident. And the brand that exists on the vehicle decreases the value of the vehicle. Can I offset the $5500 on my 1040 line 21? If so, is this something you have to do in writing (vs. electronically)?