Casualties and Thefts?

Question

Could I deduct a $7,000 Plasma TV that was stolen and never returned. If I can, how much of it could I deduct. I did form 4684 and I keep getting 0, does that sound right? Thanks!!!

Answer 1

Casualty/Theft losses routinely turn out to be $0.00 unless they are really large.

If this forumula turns out to be $0.00...then it is $0.00:

$7000 -(insurance reimbursement, if any) - $100 - (10% of your income) = casualty loss.

If your adjusted gross income is over $69000, then your casualty loss will be $0.00.

Answer 2

Your buddy is right yet you will possibly no longer benefit via doing what he pronounced. Your casualty and theft losses has some obstacles. this is a thank you to calculate it and why the deduction does not help maximum folk. i'm going to apply the example of a $5000 automobile (theft loss) and your earnings is $35000 in line with 12 months. a million. the 1st hassle is a $one hundred "deductible". So shrink you loss via $one hundred. Your loss is now $4900. 2. the subsequent hassle is which you in straightforward terms get to deduct the quantity that each and every physique your theft and casualty losses for the 12 months exceeded 10% of your adjusted gross earnings. 10% of your $35000 is $3500 so subtract that from the $4900. Your loss is all the way down to $1400. 3. you're taking that to time table A the place you itemize your deductions. If this $1400 plus all your different itemizable deductions do no longer exceed your standard deduction (relies upon on your document status yet is between $5K and $11K, it does not benefit you in any respect to itemize). yet once you already itemize, this $1400 loss will shop you $210 for the reason which you're interior the 15% tax bracket. extra suited than no longer something yet no longer lots convenience for a $5000 loss. So replace your loss and your earnings and your standard deduction, and you will see in case you will shop something. i'm hoping you have better than in straightforward terms a canceled verify for info in case of audit - a invoice of commerce or something - for the reason that canceled assessments are seldom seen adequate info of any money that vast.

Answer 3

The other answers are good, but a common mistake people make in filling out the 4684 is that they put the value at the time of the loss as the value after the loss.

Say you could have sold your TV for $4,000 at the time of the loss. That is your value at the time of the loss. The value after the loss is zero, since you no longer have the TV.

Answer 4

Did you file an insurance claim on it? You can only deduct the amount not covered by insurance. And, it has to be over a certain % (10 I think) of your income.