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Tax help when you encounter naughty people during the holidays & year round

December 6, 2011

It's the season of good will, peace, joy and happiness.

Then the creeps show up.

Burglars broke into a friend's house yesterday. The good news is that neither she nor her husband were home and the crooks didn't get much of value.

Daytime burglar via xpress protection Photo of daytime break-in courtesy XpressProtection.com

But having been a victim of a break-in myself many years ago, I can tell you it's a horrible experience that changes you forever.

Crime prevention tips: The scumbags apparently got in through my friend's garage door.

The police said they've had reports of criminals crusing neighborhoods this holiday season looking for empty houses, then testing a basic garage door opener they have. When the door comes up, they're in.

There are a couple of ways to stop or at least make such illegal entries harder.

First, lock the door that leads from your garage into your house. Sure, the burglars can close the garage door and then spend some time picking or breaking that lock, but since these criminals seem to be looking for the easiest scores, a locked door might just make them move on to a less protected house.

Second, after you pull out of your garage, go back in, close the garage door and then set the garage door security lock. Some systems have this on the wall opener. Others have safety bars you can manually put in place.

Then go through your house to get to your car, remembering to lock your font door behind you.

Yes, that's inconvenient.

But when burglars are on the prowl for all the Christmas gifts you've got in your house, it's worth the extra trouble. And remember to do this when you take a vacation, too.

Deducting theft and casualty losses: If, however, after all your precautions you still fall prey to crooks, you might be able to get some help from Uncle Sam.

Yep, that same Form 4684 that you fill out for disaster losses works when the physical damage is not as catastrophic.

Technically, the the tax category is theft and casualty losses.

And while criminal codes differentiate between thefts and burglaries (and larceny and robberies; my first journalism job was covering police, followed by covering the courts), burglaries fall under the IRS definition of the deductible property loss:

A theft is the taking and removing of money or property with the intent to deprive the owner of it. The taking must be illegal under the law of the state where it occurred and it must have been done with criminal intent.

Know your deduction limits: The same limits that apply to major natural disaster claims apply to theft (and burglary) losses.

First, you have to itemize to claim the deduction.

Then if you have insurance and get a payout from the company, you have to subtract that amount from your loss.

You then must reduce you uninsured loss amount by $100.

Finally, you take that reduced loss amount and subtract 10 percent of your adjusted gross income. That final figure is the amount you can claim as a deduction on Schedule A.

If it's your personal property that was damaged, destroyed or stolen, check out IRS Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property).

For losses of business property, there's IRS Publication 584B, Business Casualty, Disaster, and Theft Loss Workbook.

If the crooks didn't get much or you have really good insurance, this tax break probably won't help.

But the deduction is worthwhile for some people. And anything that could help when your home has been violated is worth looking into.

I'm hoping that none of you have to think about this during the holidays or ever. But just in case, now you know.

I now return you to holiday shopping, baking, Christmas carol singing and general festive seasonal celebrations.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Great tips for some bad experiences, thanks!

  • “The most difficult thing in the world to understand is the income tax”– Albert Einstein. If you have a complex tax return, you might not want to prepare the forms all by yourself if you are not experienced.

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