This isn’t considered a bad debt – a bad debt involves a loan that hasn’t been repaid.
The scenario you describe amounts to theft and, unfortunately, you can no longer deduct such a loss. The deduction for personal casualty or theft losses has been suspended (eliminated) through tax year 2025, unless the loss occurred in a federally-declared disaster area and was directly caused by the disaster.
Please see the TurboTax Help article "What if I have property that was lost or damaged (a casualty loss)?" for more information.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
