Calculating the deduction on loss from theft

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			Calculating the deduction on loss from theft Jeff Schnepper Decision Center

	.......................................... BACK TO MAIN Let the IRS Share Your Casualty & Theft Losses		Once you have computed the amount of your casualty or theft loss, it must be adjusted three ways before you can deduct it: 1. Subtract the amount of any insurance payment you receive. 2. Reduce each loss by an additional $100. The first $100 for each casualty or theft is not deductible. 3. Reduce the total amount of the losses by 10 percent of your adjusted gross income. For example, assume a tree fell through my roof and caused $15,000 in damages. My insurance covered $5,000 of the damages and my adjusted gross income is $50,000. My stolen VCR was worth $500 (less than its $750 cost). My total loss was $15,500, minus the $5,000 in insurance or a net loss of $10,500. I have a $100 non-deduction for the casualty, and a second $100 non-deduction for the theft. I also must reduce my deduction by 10 percent of my $50,000 adjusted gross income (or $5,000) so I am left with a deduction of $5,300.
			What deductions and credits can I take?
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