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I had money stolen from me and can prove it with

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I had money stolen from me and can prove it with supporting documents. Can I write this off as theft loss on my taxes?
Casualty losses such as the theft of money can be itemized under certain circumstances.

A casualty loss is deductible if it exceeds $100 per loss AND to the extent that it exceeds 10% of your Adjusted Gross Income. Unfortunately, the 10% of AGI is a fairly high threshold to meet, and even then only the excess is deductible.

Here is an explanatory article:
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Customer: replied 8 years ago.
I already have that information provided. What I wanted to know is if I can enter this on my 2007 taxes and not 2006. The theft was in 2006, but I did not know for sure until 2007 that I would not get my money back.

You can amend your 2006 tax return if the theft was large enough to meet your threshold for your 2006 AGI. Since the loss occurred in 2006, a literal reading of the casualty loss provisions implies that the loss must be claimed in the year that it occurred.

BUT... reading the instructions for Form 4684, at this link, see "When to Deduct a Loss":

... THIS addresses your specific question:

"...If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become reasonably certain that it will not be reimbursed...."

So if you became reasonably certain in 2007 that your theft loss was not going to be reimbursed, you CAN take the casualty loss deduction in tax year 2007.
Customer: replied 8 years ago.
Thank you for the detailed answer and yes the theft was way more than 10% of our AGI.

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