Please see this answer from AnnetteB.
There is not a specific area within the business income and expenses portion of your return to enter business related cash theft on your Schedule C, but there is a place to put it.
Before you deduct the cash theft, there are a few things to note:
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You can only deduct it in the year that the loss was discovered.
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It is also not deductible if you have a claim for reimbursement and a reasonable expectation for recovery.
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If it has not yet been determined whether you can expect to recover the loss, then you should not deduct it on the return you are currently filing. If later it is determined that it will not be recovered, then you can file an amended return to claim the loss.
Also, there are some documentation requirements that you must meet in order to claim the loss. Keep this documentation with your records. It should include the following:
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When the loss was discovered
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Information that the property (cash) was indeed stolen
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That you are the owner of the stolen property
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Whether a claim for reimbursement exists with a reasonable expectation of recovery
To enter the information about the cash theft into your Schedule C within TurboTax, use these steps (using the Home & Business version of TurboTax):
- Go to Business > Business Income and Expenses > Profit or Loss from Business
- Click Update or Edit beside Profit or Loss from Business
- On the summary page listing the business(es), click Edit beside the business that had the theft
- Scroll to the Business Expenses section, click Update or Edit beside Other Common Business Expenses
- Scroll to the bottom of the screen and click Update or Edit beside Other Miscellaneous Expenses
- This will allow you to enter a short description and an amount for the cash theft you incurred
- Click Continue and the total amount will be included on Schedule C line 48 as an itemized list and then it will also transfer to Schedule C line 27a
