Taxes to the Rescue:

The Case of the Stolen Laptop

Client X is an independent consultant who  owns a small business he operates from his home.  Frequently Client X meets clients and works at various coffee shops around the city.  Last Monday, Client X was working in a busy coffee shop downtown when he received a phone call.  Client X went outside to take the call where it was quieter, leaving his laptop on the table.  Finishing his call as he reentered the coffee shop, Client X knew immediately something was very wrong.  Client X’s laptop was no longer on the table, nowhere in sight; Client X’s laptop had been stolen…

This situation is unfortunately all too common and quite distressing.  Not only do we all keep very sensitive information on our laptops, but the financial and emotional toll of having a personal belonging stolen can be devastating, and figuring out what to do next, overwhelming.  The good news in this situation is that your CPA can offer some much needed peace of mind and assistance.

The tax ramifications of having your property stolen can help to relieve the burden of that theft to some extent.  For example, if like Client X you own a business, use a laptop for your business and that laptop is stolen, you are entitled to deduct a certain amount of the value of that laptop as a theft or casualty loss . 

Obviously, none of us desires to have our property stolen, but should it happen, remember your CPA can help!