Can we report a financial loss on our tax return without fear of arrest by the feds? 2 Answers as of June 11, 2013

Our house was burglarized. We had just harvested medical marijuana for a local cancer co-op. Eight pounds were stolen, among other items. We reported to police and homeowners' insurance. The insurance company covered a portion of the loss. Can we report the loss (and the insurance partial reimbursement) on our tax return without fear of arrest by the feds? How do we handle this?

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Givner & Kaye
Givner & Kaye | Bruce Givner
Yes.
Answer Applies to: California
Replied: 6/11/2013
Meyer & Yee, LLP
Meyer & Yee, LLP | Kent W. Meyer
If you picked up the market value as income on your tax return and you got less in insurance you can deduct the difference.
Answer Applies to: California
Replied: 4/1/2011
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