A taxpayer may deduct a loss resulting from the theft of business and investment property but not a theft of personal-use property.

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Quizplus · Accepted Answer

The IRS allows taxpayers to deduct losses resulting from the theft of business and investment property, as it is considered a theft with a direct impact on the taxpayer's ability to earn income. However, losses resulting from the theft of personal-use property are typically not deductible unless it is a casualty loss resulting from a federally declared disaster.

A Taxpayer May Deduct a Loss Resulting from the Theft