Yes, you may be able to take some deductions on your tax return depending on if you received insurance reimbursement and what your cost basis in the property was. You will enter this by selecting...
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Yes, you may be able to take some deductions on your tax return depending on if you received insurance reimbursement and what your cost basis in the property was. You will enter this by selecting the following:
Personal
Deductions and Credits
Casualties and Thefts under Less Common Deductions
Select this is income producing property.
Walk through the steps to enter the items stolen or lost.
When you do this you will be asked to enter your cost basis which is the amount you paid for it minus depreciation or expense. So if you lost a saw that you bought in 2023 for $1,000 and took the full $1,000 depreciation in 2023, your cost basis would be $0. However, if you purchased this saw in 2023, took a full expense on it in 2023 and the insurance reimbursed you $1,000, you would enter it in the business income section as a sale of an asset and this would be a gain on the theft of property. This would be entered by selecting:
Business
Business Income and Expenses
Sale of Business Property under Less Common Business situations.