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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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Lost $4225 on a time share rental🎿🎿🎿sent money orders to

Customer Question

Lost $4225 on a time share rental🎿🎿🎿sent money orders to Mexico...big mistake...can I deduct this as a casualty and theft loss on form 4684 ....does it have to be a certain percentage of adjusted gross income?
Submitted: 8 months ago.
Category: Tax
Expert:  Lev replied 8 months ago.
A theft is the taking and removal of money or property with the intent to deprive the owner of it. The taking must be illegal under the law of the state where it occurred and must have been done with criminal intent.If your situation meet this definition - then you may deduct theft loss.
Expert:  Lev replied 7 months ago.
Individuals are required to claim their casualty and theft losses as an itemized deduction on Form 1040, Schedule A , Itemized Deductions.For property held by you for personal use, you must subtract $100 from each casualty or theft event that occurred during the year after you have subtracted any salvage value and any insurance or other reimbursement. Then add up all those amounts and subtract 10% of your adjusted gross income from that total to calculate your allowable casualty and theft losses for the year.Report casualty and theft losses on Form 4684 , Casualties and Thefts. Use Section A for personal-use property.Let me know if you need any help with reporting?..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.