Uninsured losses of property due to theft are tax deductible. In the case of personal property, however, a theft loss deduction is a personal itemized deduction claimed on Schedule A. Such losses are deductible only if, and to the extent, they exceed 10 percent of the taxpayer’s adjusted gross income. Moreover, the first $100 of such losses are not deductible.
For tax purposes, theft includes far more than a mugging or burglary. It includes “any criminal appropriation of another’s property by swindling, false pretenses, and any other form of guile.” Thus, you can be entitled to theft loss where you can show that a contractor deliberately lied and deceived you to get your money.
deductible:
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