You would need to claim a casualty loss by filing Schedule A and itemizing your deductions. In case your not familiar with this form please view this link: What is Schedule A?
A casualty theft loss is claimed on IRS Form 4684. The information below explains the qualifications for claiming a loss deduction.
When you lose an item due to an accident, theft, or natural disaster (which the IRS calls a "casualty loss"), you may be able to take a tax deduction for the value of the property that is not covered by your insurance. The lost or damaged item can be business property, investment property, or personal property. The damage or loss can be due to a variety of causes such as a car accident, earthquake, flood, fire, hurricane, or vandalism.
Property loss or damage that isn’t deductible includes progressive deterioration such as termite or moth damage. In addition, accidental losses of personal items, such as a ring dropped down the sink, are not deductible.
Note: For tax year 2017 (the one you’re filing now), the rules for calculating deductions for property loss or damage remain unchanged, unless the losses were caused by a natural disaster.
Please view the TurboTax link below for more information about claiming this deduction.
https://turbotax.intuit.com/tax-tips/tax-relief/about-casualty-deduction-for-federal-income-tax/L8AV...
In TurboTax, jump to the entry area for casualty loss:
- Open your return.
(To do this, sign in to TurboTax and select the Take me to my return button.)
- Search for "property or loss damage" and then click the "Jump to" link in the search results.
- On the 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.
