@ron6612 wrote:
Another question related to trust theft loss deduction during the national emergency: we have pictures, old appraisals and bills of sale for the jewelry but no current appraisals as the theft occurred during a disposal of apartment assets after my mom died due to Covid. The work was done by a contractor and during the entire process we were not allowed to be in apartment. Since don’t have appraisals was going to use what we have to determine fmv at time of loss. What do you think about this approach? I was also going to attach statements to 4684 explaining this.
You're going to have to get creative and make the best estimate you can. You might take the proofs you have to a jeweler or qualified appraiser and pay their fee for a report. It might have qualifications or a wide range, but it would be better than nothing.
If audited, the IRS doesn't have to award any basis other than what you can prove. At a minimum, you can prove the cost for some items, and I suspect jewelry does not go down in price very often.
