How do I write off theft losses on my taxes?

Dec 20th, 2009

Ricky Y asked:


I bought a truck in ’06 paid on it for 6 months or so, it was stolen in ’07, how do I get some of that back? Ofcourse I can’t write off the total value because it wasn’t paid off, what do I do?

Michael

Tags: Taxes, Theft Losses, Total Value

One Response to “How do I write off theft losses on my taxes?”

1. v b says:

   December 20, 2009 at 8:09 pm

   First you do form 4684 to calculate your loss. You take the FMV at the time of the theft and subtract any insurance you had. You also subtract $100 and 10% of your AGI. If there is anything left, it goes on schedule A.

   If schedule A is more than your standard deduction, you will see a small decrease in your taxes.

   The fact that you still owe on the truck doesn’t come into play with this form. If the loan company cancels the debt, that will be income to you at that time.