Category: Deductions & Credits Copyright 1998, The Tax Resource Group. All rights reserved. Telephone 800-578-3498. Internet: www.taxresourcegroup.com Theft Loss, Insurance Claim For an individual's casualty loss of property which is not related to a trade or business or used in an activity engaged in for profit, filing a timely insurance claim is a statutory prerequisite for claiming a casualty loss deduction. IRC Section 165(h)(4)(E) provides as follows. Any loss of an individual described in subsection (c)(3) to the extent covered by insurance shall be taken into account under this section only if the individual files a timely insurance claim with respect to such loss. Accordingly, if your client's theft loss was
covered by insurance and the client did not report the theft to the insurance
carrier for whatever reason, there can be theft loss deduction. |
