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 next.
For a casualty loss, your records should show all the following.
- The type of casualty (car accident, fire, storm, etc.) 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.
For a theft loss, your records should show all the following.
- When you discovered that your property was missing.
- That your property was stolen.
- That you were the owner of the property.
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