Accounting for a theft loss and subsequent insurance payment in Quicken Home and Business

maineuropa

Looking for some accounting suggestions for handling this. Should I make a new asset account and run all funds in and out thru that?

NotACPA

What type of asset was stolen (sorry about that) and how did you have it recorded in Q?

Also, how much of the pre-theft value, as recorded in Q, was reimbursed by insurance?

maineuropa

I lost my garage doors with an estimate of $6000 to replace. They were replaced (cost to me $6000); the insurance company paid $5000. There is a list of tools and a dump trailer that were also stolen, with a similar reimbursement of $5000. I would have to add up my replacement costs on the lost tools, etc. I do not consider the insurance payment as income, and much of the tools, etc were not logged as assets in my Quicken accounts. With the deductibles and the non-replacement cost coverage, I expect to show a tax loss....but am trying to account for this in the clearest and simplest way.

Mark1104

there is no tax loss available under current laws - does that make it easier on the quicken question? you may just want to set up a special expense or income category and throw all the receipts from the insurance company and your replacement expenses into this same account and be done with it. 

NotACPA

You had garage doors stolen??? Wow, that's a first for me.

BUT, regarding your Q question, I agree with @Mark Steinman's suggestion.

maineuropa

Dear Mark, Are there no more casualty theft losses deductions? Is that what you are saying?

Mark1104

that is correct - it was eliminated with the 2018 tax law changes (unless the loss was occurred as a result of a federally declared disaster)

https://www.irs.gov/taxtopics/tc515