Theft Loss
What theft losses are tax deductible? (Definition of
Theft)
Under the tax law, a theft is the taking and
removing of money or property with the intent to deprive the
owner of it. The taking must be illegal under the laws of the
state where it occurred and must have been done with criminal
intent.
Examples of theft
Theft includes crimes such as:
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Blackmail
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Burglary
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Embezzlement
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Extortion
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Kidnapping
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Robbery
Theft does not include the simple
disappearance of money or property because you lost or mislaid
it. But, the accidental loss of property can qualify as a
casualty if it results from an identifiable event that is
sudden, unexpected, or unusual.
What are not considered theft losses (and
therefore are not tax deductible)?
Theft does not include the simple
disappearance of money or property because you lost or mislaid
it. But the accidental loss of property can qualify as a
casualty if it results from an identifiable event that is
sudden, unexpected or unusual.
How to prove a theft loss?
In order to prove a theft loss, your records
must show all of the following:
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The date you discovered your property was missing
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That your property was stolen
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That you were the owner of the property
-
Whether a claim for reimbursement exists and there
is a reasonable expectation of payment
The best record is a police report. Notify
the police of any theft of your property.
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