During our recent down time, I found this for you. It might help get back the money you lost. It's a lot of work, but I'm not sure how much you lost, so it's up to you if it will be worth the extra work. It helps if you lost out on a lot of money. I wonder if Jordan knows about this?
2003 Federal Tax Deductions Theft and Casualty Loss
If you were the victim of theft, a natural disaster, or any other qualifying loss last year, you can claim a percentage of your loss as part of your tax deductions, and save a bundle.
This page:
Describes casualty and theft tax deductions
Makes clear what is included in your tax deductions
Explains how to claim these two tax deductions
Deducting loss from your taxes
Casualty and theft loss are recognized by the IRS as valid tax deductions. The rule of thumb to keep in mind if you think this deduction applies to you is the occurrence must have been unpreventable.
For instance, damage caused by severe weather or a loss due to theft are considered valid income tax deductions, while damage by usual wear and tear or accidental loss of property are definitely not valid income tax deductions.
Basically:
If your loss was not avoidable, tax deductions are allowed.
Sidebar
The easiest way to claim these income tax deductions, and all other 2003 federal tax deductions is to use an easy online tax file service. You'll avoid costly mistakes, and if you take the H&R Block online tax file interview, a tax professional looks over your return and recommends changes that could save you even more.
How to determine your casualty and theft tax deductions
As the victim of unfortunate circumstances, you are eligible to deduct a percentage of your loss as one of your income tax deductions. The amount of your casualty and loss tax deductions varies depending upon your adjusted gross income and the value of your loss.
First, figure out the fair market value of your loss. Getting an appraisal or comparing costs and current market values are two methods for determining the actual value of any loss or casualty you are claiming as tax deductions. Although it seems a bit extreme, it is a good idea to take pictures of any valuable items you own. This way, you'll easily be able to ascertain the worth of any stolen goods.
Compare the fair market value of your loss with the amount it originally cost you. The amount you use to calculate your total casualty and loss tax deductions is the lower of the two.
In case of property damage calculate the decrease in the fair market value of your land or house and compare it to the original cost plus the cost of any improvements you may have made. The deduction you are allowed is the lesser of those two amounts, reduced by both $100 and an additional 10% of your adjusted gross income.
Remember, if you receive any compensation for your loss from insurance or the government, you must reduce your loss by that amount before you calculate any casualty and loss tax deductions.
How to claim the casualty and theft tax deductions
First, you must be able to show proof of loss in case you are ever audited by the IRS. Although this can be tricky, especially in cases of stolen property, you should attempt to gather as much of the following information before making any casualty or loss tax deductions:
A description of your casualty or loss
The date of occurrence
Proof that you owned the property
Proof of the original cost of the property
The fair market value at the time of the loss
The amount of any reimbursement you received.
To claim any casualty and theft tax deductions, IRS Form 4684 needs to be completed for every instance of loss and included with your paper return. This tax form walks you through the calculations and asks for all the necessary information.
After the form is completed, your total in casualty and loss tax deductions is entered in the appropriate line on Schedule A, If you e-file, these additional forms and calculations are taken care of for you once you enter the basic information.
Related IRS publications
You can get more information about casualty and theft tax deductions directly from the IRS, in the form of IRS Publication 547
To help you figure out your loss amount, the IRS provides two workbooks: Publication 584 for personal use property, and Publication 584b for lost business property.
If you file a paper tax return, you will also need to attach IRS Form 4684, and fill in the appropriate line in Schedule A. (If you e-file, all of this will be done for you electronically.)
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