Yes, you can report the loss—but you must follow a precise, documented process to ensure the IRS recognizes your claim. Here’s how to proceed if Bane stole your precious armory:

1. Report the Theft Immediately:

File a police report with Gotham’s finest as soon as you discover the theft. This establishes an official record of the incident, which is critical for any subsequent tax claim.

2. Determine the Nature of the Property:

• Business vs. Personal:

If your armory is used as part of your crime-fighting operations or business activities (for example, as a vital asset of your operations), it will generally be considered business property. In that case, you may be able to claim a theft loss on your business tax return.

If it’s strictly personal property, note that under current tax law, personal casualty and theft losses are typically only deductible if they result from a federally declared disaster—so business classification is key here.

3. Gather Detailed Documentation:

Collect all evidence of ownership, the value of the stolen items, and any related expenses (such as security enhancements or appraisals). Keep copies of invoices, receipts, and any communications that verify the armory’s contents and its value before the theft.

4. File IRS Form 4684:

For business property theft losses, complete Form 4684 (Casualty and Theft Losses). This form will require you to detail the amount of your loss, the adjusted basis of the property, and any insurance reimbursements you may receive.

5. Reflect the Loss on Your Tax Return:

Once Form 4684 is completed, incorporate the loss into your business tax return (for example, on Schedule C if you’re a sole proprietor or the appropriate form for your business entity). Ensure that you accurately account for any insurance reimbursements—any recovery received will reduce the deductible loss.

6. Consult a Tax Professional:

Given the complexity and potential scrutiny of theft loss deductions, it’s wise to work with a CPA or tax advisor who understands both the nuances of casualty and theft losses and your unique operational needs.

By taking these steps, you can report the loss of your armory and claim the appropriate deduction. Remember, precision in documentation and prompt reporting is your best defense—not only against Gotham’s villains but also against the relentless scrutiny of the tax code.