Casualty loss question - no apprasial?

[cjnc201]

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!

[SweetieJean]

Was it insured?

[rjs]

This doesn't answer your question, but keep in mind that any insurance reimbursement reduces your casualty loss. If the ring was worth $15,000 at the time of the theft (however you determine that), and the insurance pays $12,000, your casualty loss is $3,000. After you subtract $100 and 10% of AGI, you might have no deduction at all. If you think the value is in the range where there's likely to be no deduction, there's no point in losing any sleep over how to determine the value.

[cjnc201]

thanks all for the quick responses. AGI is small enough that there will definitely be a deduction, but im just getting stuck at that fair value part and how to figure that out since there was never an appraisal after the purchase. the ring was never added to the insurance by the time it was stolen, so there was no specific payout for the ring itself. it fell under the personal property limits and the payout was really small. so even when you net the insurance proceeds, $100, and 10% of AGI, there will def be a deduction. Just need to figure out how to get the fair market value so I can compare to the adjusted basis and figure out what number to use to calculate the loss. thanks again!

[Rainman12]

"never an appraisal after the purchase" = go with purchase price, since neither depreciation nor appreciation is assured ...