Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

What Does a Burglary Mean for Your Taxes?

August 26th

After a robbery, the last thing you want to be concerned with is your tax bill. Such an event can have not only an emotional impact, but a huge financial one as well. However, in some cases, it may be possible to deduct some of the cost from your taxes.

Navigating Tough Tax Laws

The problem with trying to deduct losses from a robbery lies in several tough tax-law hurdles. In particular, taxpayers often have trouble with the “$100 rule” and the “10 percent rule” on casualty and theft losses, which involve “personal-use” property.

According to regulations set out by the IRS, $100 must be subtracted from the value of each casualty or theft event that occurred during the year. These amounts must then be added, then 10 percent of your adjusted gross income subtracted from the amount. That gives the allowable casualty and theft losses for the year. Ultimately this means that while part of the amount may be deductible, there are limits on the amount that may be claimed.

It is important to note that rules such as these can change based on circumstance. When in doubt it is a good idea to consult a tax professional or tax lawyer.

Important Facts to Remember

Though in some cases it is possible to deduct part of the losses incurred as the result of a robbery, it is never possible to deduct anything already covered by insurance unless you file a timely claim for reimbursement. In these cases, you will have to reduce the amount of losses reported by any reimbursement you receive.

It is also important to keep as close a record of the burglary as possible. This could include photographs of the crime scene or, most importantly, a police report documenting the event.

Also, nothing can be deducted from your tax returns unless you itemize your deductions.

 
 
RSS

Subscribe Now
Social

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Categories
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
Archives
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011