To report a casualty or theft loss in Turbo Tax,
Go to Deductions & Credits.
Select I'll choose what I work on.
Go down to Other Deductions and Credits.
Select Start or Update by Casualties and Thefts.
Click Yes to continue.
The next screen, Losses From Fraudulent Investments, is specifically asking about investment losses, which you don't have in this case.
Enter the description of the event that destroyed it.
Enter the date of occurrence and the type of property.
On the next screen, enter what was damaged, the date of acquisition, the cost basis (product cost PLUS how much you originally paid to have it installed), and insurance reimbursement (if any).
On the next screen, enter the fair market value (what it was worth) before AND after the event.
The IRS then limits your loss by taking $100 off the difference, then further limits it by taking 10% of your adjusted gross income off of your net loss (the difference).
The final amount gets carried to line 20 of your Schedule A, which you can only use if that PLUS the rest of your deductions are larger than the standard deduction for your filing status.
For more on Casualty and Losses, see here.
For a list of other deductions you can take on your Schedule A, see this link.
