Illinois On my taxes can I deduct stolen motorcycle?

Question

I had a friend tell me that I can deduct on my taxes,my stolen motorcycle.It was stolen then police department called me they found it.I was told it was in good hands at another police department.I called this other police department they said they will call me when they release it.I called several times and said same thing and one day I called again and what they said shocked me.They sold it.Police department stoled my bike and sold it.It wasn't there's to sell.This friend said I could deduct my motorcycle on my taxes.Is this true??

Thank you for your help.I'm a peeon I don't have money to get lawyer everthou state police,they are the ones also that told me it was found,in good hand and safe with _police deparment.will back me up on this matter if I go to court over it.I was told if I sue or anythingit will get nasty and to let it be,so thats out of the question.Police report says it stolen.But to me I was victum again when police stole my bike.Its just I bought it paid taxes on it and at the end stolen by police.I spoke to them many times and they say its out of there hands talk with the one that bought it,happens they sold it to the towing place that tows stuff for police department.I have explain to him but no way he said police sold me the bike if you want it you have to buy it from me.ok what is wrong here.I bought it paid taxes on it and I have to buy my own bike back that I own and have title to and pay sells taxes on it again.They won't talk to me anymore unless I have the money to buy my own property.

Answer 1

Forget the casualty loss (which I think you qualify for anyway). how about a lawsuit v the PD that sold your bike?

The laws are written so that most people can't claim casualty losses - they are for real catastrophes.

Answer 2

The casualty/loss claim refered to by a couple others is very difficult to claim. The way it works is you can only claim the amount in excess of 10% of income (plus a $100 reduction from the IRS). For example:
Income - $40,000
FMV of motorcycle - $6,000
Amount not allowed by IRS - $4,100 (10% + $100)
Final results - you are out a $6,000 motorcycle and you can only claim $1,900 on your taxes as an itemized deduction (if you do not itemize, you may not even be able to claim the $1,900).

One other thing, since one police department had your bike after it was reported stolen, I am not even sure that the item qualifies as stolen property now (what would all the appropriate police reports say?)

Answer 3

Of you had a business you could probably deduct it as a business loss. Without having a business, no.. I don't think so, the only thing like that is to do with legal costs that can be deducted, but there are only certain types of legal costs.

I just don't see how that's a tax deduction, unless you were using it for "contract" labour.

Hope a tax person answers you..maybe they know about this issue.

What a terrible thing to have happen to you.. That would make me really upset and angry. I would do something about that if I were you, as you should have been given the proceeds from the bike sale..somethings wrong there..

Answer 4

Did you document an insurance declare on the motorbike additionally? under is the internet internet site that provides you the formulation for deducting own sources casualty losses. remember although, the loss is constrained via your adjusted gross earnings, so in case you have no longer have been given enought to itemize on your tax returnd, in simple terms take the common deduction.

Answer 5

Check into 'Casualty & Theft Losses' as www.irs.gov

Off the top of my head, I am not sure if this will qualify for the deduction, but it is certainly worth looking into.

If you can deduct it, you would put it on your schedule A as an itemized deduction.

Answer 6

It may be deductible, depending on the value of the motorcycle and your adjusted gross income. Read this for more information:

http://taxes.about.com/od/deductionscredits/qt/CasualtyTheft.htm