Well, there was no insurance reimbursement. The truck was fully depreciated, and the individual tools were expensed at time of purchase. I was told that for small businesses the tangible property expensing threshold is $2,500, which none of the tools exceeded, so I could expense them the year of purchase. And if I understand you correctly, the cost basis on everything would be $0, thus no deduction. I assumed that I would use Pub. 584-B, Business Casualty, Disaster, and Theft Loss Workbook and calculate a loss that would go on my schedule C. I also had lost business due to lack of transportation, and I assumed that there was somewhere I could record that loss.
