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

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

Answers

  • NotACPA
    NotACPA SuperUser ✭✭✭✭
    edited October 2020
    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?
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • 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
    Mark1104 Member ✭✭✭✭
    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
    NotACPA SuperUser ✭✭✭✭
    edited October 2020
    You had garage doors stolen??? Wow, that's a first for me.
    BUT, regarding your Q question, I agree with @Mark Steinman's suggestion.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Dear Mark, Are there no more casualty theft losses deductions? Is that what you are saying?
  • Mark1104
    Mark1104 Member ✭✭✭✭
    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