Hi and welcome to our site!If there is a theft loss of inventory - generally there are two options. The first and may be the simplest is to deduct them is by adding the value to the cost of goods sold. For instance if you are a sole proprietor - that amount is reported on Schedule C
schedule C, line 39 - http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
Another way is to report them on IRS Form 4684, Casualties and Thefts. Section B is used for business or income-producing property. - http://www.irs.gov/pub/irs-pdf/f4684.pdf
something is wrong with this site, the answer keeps repeating its self. But, I got it thanks.