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Take care in deducting loss from a burglary
New York tax guidance explains casualty loss deductions for uninsured theft. Courts have allowed partial deductions when proof of cash and jewelry losses is shown, and even pending lawsuits may not bar deductions if a reasonable prospect of recovery exists. Trees damaged by grading do not qualify. A heater burst may not qualify if loss arises from gradual rust or corrosion.
MENTIONED IN THIS ARTICLE
New York
IRS
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Court of Claims
Aminer
Treasury
Sury
Tax Court
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