Hi all - trying to find some details surrounding how to report the numbers relating to casualty loss/theft.
As an example, lets say someone steals your jewelry, like an engagement ring, which can be a pretty expensive item. If your original basis is lets say 10K but you havent had an appraisal done since you purchased the item, how do you estimate the fair value of the ring or whatever item you lost from the theft? Do you just use the original cost (assuming diamonds appreciate) or do you take the value or replacement cost of what the insurance company gives you (even if its unreasonably low)?
Thanks!
