Yes, you may have a tax deduction for the value of the property that is not
covered by your insurance. You have itemize using Schedule A to claim the losses.
To enter your rental casualty or theft, select Tax tools on the left-hand side of your screen, select Tools, select Topic Search, enter stolen, and select Go to get to the Stolen or Damaged Items topic. On the casualty or Theft Event screen, choose Income-Producing Property. You can enter your personal losses here as well or:
In TurboTax, jump to the entry area for casualty loss:
(To do this, sign in to TurboTax and select the blue Take me to my return button.)
- Search for "casualty loss" and then click the "Jump to" link in the search results.
- On the Casualties and Thefts (or Stolen or Damaged Items) screen, select Yes.
- Answer the interview questions describing your event.
- When you complete the event and reach the Property Summary screen, you can enter any additional property losses by selecting the Add a Property button.