Theft tax deduction??? Any accountants or people that have done this before??

Discussion in 'Community Discussion' started by uspcommuter, Apr 2, 2009.

  1. uspcommuter macrumors regular

    Aug 23, 2004
    Hi y'all...

    My place was broken into last year (2008) and I lost of iMac G5 and Nintendo Wii in the process.

    My boss said that there is a tax deduction for theft and suggested I look into it. Has anyone had any experience with this?

    It is easy to give the fair market value of my Wii since its new and the price is generally accepted. b/c one particular problem is how do I establish the value of my iMac G5.

    Can anyone shed some experience on this matter with me? like documents I should have (i.e. police report)? or anythings I should be aware of by filing this claim on my taxes? any help would be appreciated.

    thanks much.
  2. Sun Baked macrumors G5

    Sun Baked

    May 19, 2002
    Tax Prophet Theft Loss Deduction

    However for 2009, they may have changed things a bit due to the Madoff Ponzi scheme. Don't know if the 95% immediate deduction applies to only ponzi schemes or not, probably does.

    Depending on when you lost the stuff, all depends on when the exhausted reasonable means to recover from insurance and a police investigation would allow you to make the deduction.
  3. uspcommuter thread starter macrumors regular

    Aug 23, 2004
    Well, I didnt have insurance at the time b/c I was just moving in. As for police investigation, I spoke with the inspector they usually just house theft cases until some miracle. Seeing how its been almost of year. I think its safe to say my iMac is long gone.

    But once again...what do I use as the value of my iMac? is it the price of initial purchase plus the add on components (i.e. hd and ram) or do the IRS accept a guesstimation?
  4. CorvusCamenarum macrumors 65816


    Dec 16, 2004
    Birmingham, AL
    I'm guessing the odds of you getting audited over one item are low, especially since it's not like you'll be claiming it was a $10k loss or something like that.

    I'd either go with historical cost, cost to replace, or whatever a similarly spec'd machine is going for these days, whichever makes you feel better.
  5. Macky-Mac macrumors 68030


    May 18, 2004
    what it was worth when it was stolen... which sadly is going to be a lot less than you paid for it. You could try to get an estimate and make adjustments as necesary

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