Theft Loss

[geekgirldany]

I have a customer that does handy man type work. Well as part of this work he does plumbing and often pulls out the old copper pipes. He done this for several jobs. He would put it in a pile in the back yard. He went back there one day and noticed it was gone. A police report was filed.

He is wanting to take it as a business theft loss... but I think since he never paid anything for it then it is not deductible. Is this correct?

[veritas]

correct

Ironically this is what we call magic copper since it's existence is only known when it is missing.

[S T]

Salvage Value

Wasn't he trying to save the "old material" to receive $$ as "salvage value", in which case he would have to report $$ received for the material.

No value or money paid for "scrap" thereby "no deduction"

Sandy

[geekgirldany]

Thanks so much just wanted to double check.

Yeah interesting read on the police report. He wasn't sure when it was stolen