Form 4684, can I group the theft of hand tools into one tool box?

[philspargo]

My work tools were taken from my stolen work Van. I have several tools boxes with small hand tools. Can I list the "tool box" as one item? I also have boxes of supplies that were taken. We are taking about hundreds of plumbing and electrical parts.

Anyone that has experienced a theft like mine, could you give me any guide lines of how to list Contractor parts and tools on Form 4684.

Thanks1

[MinhT1]

The tax treatment of personal casualty losses and thefts is changed under the Tax Cuts and Jobs Act. Pursuant to the TCJA, the itemized deduction for personal casualty and theft losses is temporarily limited in tax years 2018 through 2025 solely to losses attributable to federally-declared disasters.

You can't claim the theft of your tools if the tools are for personal or if you are an employee.

If you are a contractor or self-employed, you can deduct your loss (the part not covered by insurance) based on the fair market value of the tools as defined in Publication 584-B (Schedule 6). The value of the loss is then transferred to form 4684.

[Edited 02/20/24 | 4:03PM PST]

@philspargo   @mesquitebean  I have edited my answer

[mesquitebean]

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@MinhT1 wrote:

The tax treatment of personal casualty losses and thefts is changed under the Tax Cuts and Jobs Act. Pursuant to the TCJA, the itemized deduction for personal casualty and theft losses is temporarily limited in tax years 2018 through 2025 solely to losses attributable to federally-declared disasters.

You can't claim the theft of your tools.

Please read this IRS document for more information.

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@MinhT1 

You mentioned "personal casualty losses and thefts" above, but I can't tell if the user is referring to business property or personal property.   He uses the term "contractor" at one point.   If the stolen items were self-employed business property, wouldn't that be handled differently?  I'll try to get them to post more info.   I'm not a tax person, so hopefully you'll be able to further assist if they post back.  Thanks!

@philspargo   Can you please describe further the character of your work that used these stolen tools and supplies, and when you said "contractor" are you a self-employed/independent contractor using these items in your business?   

[philspargo]

I'm a General Contractor here in California.

None of my tools that were stolen were personal!

The Van is a work only truck and the tools are "work" tools ONLY, used for business to generate income.

[mesquitebean]

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@philspargo wrote:

I'm a General Contractor here in California.

None of my tools that were stolen were personal!

The Van is a work only truck and the tools are "work" tools ONLY, used for business to generate income.

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Thanks for the additional info.  I was suspicious that might be the case.   

I'm a fellow user and can't help you with reporting theft of business property, but I've requested @MinhT1 return and help you further when they are next in the forum, which is unpredictable since many are on and off in the forum.  It could be still this evening, or it might be in the morning.  In any case, it's also possible another forum tax expert may see the thread and join in to help you.  Good luck!

[philspargo]

Thanks for your response.

My issue is that I HAD several boxes of supplies and many small tools that would require a hundred entries, if listed separately.  

I was hoping that another Contractor, that had a similar loss, would get in the conversation.

Thanks!

[DianeW777 · Accepted solution]

Yes, as long as you have your list of items stolen you can group them into two categories. Keep all records with your tax return file so that you can provide details should you need them later.

1. Tools
2. Supplies

As stated by @MinhT1 'If you are a contractor or self-employed, you can deduct your loss (the part not covered by insurance) based on the fair market value of the tools as defined in Publication 584-B (Schedule 6). The value of the loss is then transferred to form 4684.'

@philspargo 

[philspargo]

Thank You!

How do I handle the "acquire date" ? I've been in business for decades, acquiring tools at various dates over the years.

[TomK2023]

You can use your best recollection as to when you acquired a specific stolen item.