USA Theft Loss


Joined
Jul 21, 2020
Messages
5
Reaction score
0
Country
United States
I have a client (S Corp) who claims a theft took place at his warehouse and he lost about 40k worth of equipment. The equipment is not on the books, nor any depreciation been taken in prior year. How would you deduct his expense on 1120S? I believe I should first book the asset in the current year (2018 already filed). Then complete Form 4684 and include loss (50/50 husband and wife on Schedule K). Can someone tell me if this would be enough? Also, the client does not have any invoices or itemized list of the items stolen. He says he can prepare a list with estimated Cost and determine the adjusted basis. He does not have a police report in his possession. Any thought would be appreciated.
 
Ad

Advertisements

kirby

VIP Member
Joined
May 12, 2011
Messages
1,993
Reaction score
272
Country
United States
Be sure he includes on his list of stolen items that have no receipts the $800 million in gold and diamonds. :p

I strongly suggest you read this:

One guess as to whom your client will point the finger at when this goes south.
 
Last edited:

kirby

VIP Member
Joined
May 12, 2011
Messages
1,993
Reaction score
272
Country
United States
Absolutely! He claims a large dollar loss for assets not on books, no receipts, no police report on the "theft". How many red flags do you need?? Do not prepare the return. Withdraw from this client.
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Theft loss 5
Theft Loss 2
Theft loss deduction... 4
Loss/Theft declared on Taxes 2
Credit card covers loss and theft 7
Theft 3
fraud - theft 1
Theft expenses 1

Top