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?
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
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