Accounting & Bookkeeping & Small Business Forum

[timfa]

An item was purchased for $2000 and also stolen within 2 weeks, but not set up as an asset so I was just going to write it off. Can I put in an miscellaneous expense account, or should it be handled some other way? No insurance involved. Thanks.

[areedy]

You do need to set it up as a fixed asset. As you have not had a chance to depreciate it, you have to write off the total cost of $2000 as a Casualty Loss.

[Ingmar]

areedy wrote: You do need to set it up as a fixed asset. As you have not had a chance to depreciate it, you have to write off the total cost of $2000 as a Casualty Loss.

Can this be done without any documentation stating the items were indeed proporty of the company, and were indeed stolen?
I am thinking of a report for filing the stolen goods at a policestation or something.

[areedy]

Since the item was purchased 2 weeks prior to the theft, there should be a receipt for the item. As far as police report is concerned, i am not sure about that...

Any thoughts anyone?

[RobJ]

Ingmar wrote: Can this be done without any documentation stating the items were indeed proporty of the company, and were indeed stolen?
Do you have a receipt for the purchase? If so, are you questioning whether you need "proof" of the theft? Was there insurance? If so, will a claim be filed?

[Richard Noot]

If there was insurance then a claim MUST be filed otherwise it is considered a personal non deductible loss. Proof must be maintained that the item was indeed purchased and paid for. If you do not have a receipt for the purchase I would get a statement from the seller that the item was indeed purchased delivered and paid for.