Stolen or damaged inventory
Varies
Can You Write Off Stolen or Damaged Inventory?
Short answer: Yes: lost, stolen, or damaged inventory reduces cost of goods sold or is a casualty loss.
Insurance reimbursements reduce the deduction.
Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.
BW-B22-00784
low risk
Stolen or damaged inventory
Varies
General Business
Supplies & Inventory
Business Write-Off Questions
Yes: lost, stolen, or damaged inventory reduces cost of goods sold or is a casualty loss.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes: lost, stolen, or damaged inventory reduces cost of goods sold or is a casualty loss. Insurance reimbursements reduce the deduction.
Category
- Business Write-Off Questions
business question
search demand 2026
losses records
theft fraud