You can enter the cash theft from your business accounts in the Other Miscellaneous Expense section of the Business Expenses for your business.
The Internal Revenue Service defines theft as any crime involving "the taking and removing of money or property with the intent to deprive the owner of it." The definition covers burglary, robbery, embezzlement, extortion and even blackmail. The taking of money through fraud or misrepresentation also counts as theft if the action violates state or local law. Filing a police report helps you document the theft in the event the IRS asks you to substantiate your deduction.
You will need to attach Form 4684.
Claiming the Loss
For losses involving business-use property, refer to Publication 584-B. These workbooks are helpful in claiming the losses on Form 4684; keep them with your tax records.
