GeoffreyG
New Member

Deductions & credits

Unfortunately, no.  As many of us are crime victims too, we can absolutely sympathize with your situation:  both with your desire to get your property returned, as well as the strong motivation to see those responsible for this crime punished.

However, the tax code does not contain a provision for a cost of this kind, as money spent on or toward the recovery of personal property is not a tax deductible expense that the IRS recognizes.  Instead, the law would classify the cost of hiring private detectives as a personal item -- unless the stolen car were used as a business vehicle of some kind, or in the production of taxable income.  In that event, what you've paid to the private investigators could legitimately be deducted as a cost of doing business (i.e., a business expense).

The only idea to offer that might provide some kind of tax relief here is filing for a casualty & theft loss.  You can read more about that particular tax deduction here:

https://ttlc.intuit.com/questions/1901178-casualty-and-theft-losses

https://www.irs.gov/taxtopics/tc515.html


Once again, we are sorry to hear that you've been a theft victim, and sincerely do hope that you eventually will recover your automobile.

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