Is stolen inventory an expense?

“Expensed” Items

Instead, they’re simply reported as expenses when you buy them. … When you buy a replacement for the stolen item, your cash asset will decline by the amount you paid, and you’ll report an expense of an equal amount, just as you would with any regular purchase.

Can you write off a theft?

Theft losses are generally deductible in the year you discover the property was stolen unless you have a reasonable prospect of recovery through a claim for reimbursement.