| Can I claim refund on the entire loss of 50k ($35K was mine, $15k was my sister's)?===========>>>sorry for the losses; no, not the whole of $50K. Casualty and theft losses are reported on Form 4684 and Form 1040 Sch A of 1040 this means that unless you itemize your deductions on your return, you can not deduct the loss on your return. You can only deduct the losses if your insurance didn't cover them first. In addition. The IRS requires proof of your loss and provides detailed formulas for you to calculate your losses to figure out your deductions on your taxes. Additionally, the process for claiming casualty losses for personal property differs from the process for claiming casualty losses for federal disasters. For a casualty loss, you should be able to show all of the ;The type of casualty (, theft in your case,and when it occurred; That the loss was a direct result of the casualty;That you were the owner of the property, or if you leased the property from someone else, that you were contractually liable to the owner for the damage;Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. For a theft loss, you should be able to show ; When you discovered that your property was missing; That your property was stolen; That you were the owner of the property; Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. To determine your deduction for a casualty or theft loss, you must first figure your loss;
1.you need to determine your adjusted basis in the property before the casualty or theft.2.also you need to determine the decrease in FMV of the property as a result of the casualty or theft.3.From the smaller of the amounts you determined in (1) and (2), you need to subtract any insurance or other reimbursement you received or expect to receive.
Note; Casualty and theft losses are limited by an $100 threshold per loss event and an overall threshold of 10% of your AGI reported on 1040 line 38.To phrase this another way, your casualty loss is deductible to the extent that it exceeds $100 per loss event, and to the extent that it exceeds 10% of your AGI. For example, Tom suffered two losses last year:his uninsured laptop computer was stolen, and later an earthquake caused damage to his home. Each event is subject to a separate $100 limitation.yours is not subject to separate $100 limitation. Let's say his stolen laptop was worth $1,500, then applying the $100 limitation, we have a loss of $1,400. Similarly for the damage to his home. Now,tom’s total casualty and theft losses, when added up, are reduced by 10% of his AGI. Let's say the damage to his home reduced his property value by $10K, and tom has an AGI of $30K. The calculations would go like this:Event 1 Stolen computer ($1,500 - $100) = $1,400
Event 2 Damaged house ($10K - $100) = $9,900
•Total Losses ($1,400 + $9,900) = $11,300
•10% Threshold ($30k AGI x 10%) = $3k
•Deductible Losses ($11,300 - $3k = $8,300
Can I claim a loss for items for which I do not have receipts?==========>>>>> It is important that you have records that will prove your deduction. If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. You may need a copy of foreign receipt, a copy of bank statement/ credit card travelers’ check credit card payment or etc
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