Theft loss question.

I have a client that is an s-corp and suffered a theft loss during the 2018 tax year.
His insurance company so far hasn't compensated him and is not sure if it will.

What is the best way to show that theft loss in his 1120s return if the insurance compensates him and if it doesnt?

Any advice would be great, thanks in advance!

Research around the phrase “reasonable prospect of recovery” and theft losses.

Welcome to the forum Gavros. If after finding some info you have a more questions don’t hesitate to circle back to this thread. As to your question your client can estimate a loss if they have some sense of what you think it will be based on objective facts.

Terry's advice is good. The regs. explain sort of the mechanics of when there is a reasonable prospect of recovery, but it's really dependent on facts and circumstances. Form 4684 and its instructions tellyou how to report it.