So you’ve had the misfortune of your watch being stolen. And you took the initial step of reporting it to stolen watch databases and registries online, including of course the Alpha Hands Stolen Watch Registry.
If there is any bright spot in this otherwise terrible experience, for the amount of the loss not compensated by insurance, it is that you may be able to claim the theft as a loss on your U.S. tax returns. That’s right… Internal Revenue Bulletin: 2009-14, Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Rev. Rul. 2009-9. Specifically, “Section 165(a) allows a deduction for losses sustained during the taxable year and not compensated by insurance or otherwise. For individuals, § 165(c)(2) allows a deduction for losses incurred in a transaction entered into for profit, and § 165(c)(3) allows a deduction for certain losses not connected to a transaction entered into for profit, including theft losses.” Further note that “The character of an investor’s loss related to fraudulent activity depends, in part, on the nature of the investment.” So the ownership of the watch must be as an investment…as I read this.
I’m not a lawyer and not an accountant – make sure to take the guidance of those that are regarding any such losses.