To deduct a casualty or theft loss, you must be able to prove that you had a casualty or theft. You must be able to support the amount you claim for the loss as discussed later.

For a casualty loss, your records should show all of the following.

1. The type of casualty (car accident, fire, storm, etc.) and when it occurred.
2. That the loss was a direct result of the casualty.
3. 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.

For a theft loss, your records should show all of the following.

1. When you discovered that your property was missing.
2. That your property was stolen.
3. That you were the owner of the property.

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Publication 17 | 1998 Tax Year Archives | Tax Help Archives | Home