Recently it was reported that Roman Totenberg’s Stradivarius was found 35 years after its suspected theft.  The Stradivarius disappeared in 1980, believed by most to have been stolen.  The violin surfaced this past June when an appraiser identified the Stradivarius as the missing violin. Eventually, Roman Totenberg’s daughters recovered the violin as his heirs.  Mr. Totenberg died in 2012. Generally, it is not a taxable event when a property owner recovers stolen property. However, taxable income will be realized if the taxpayer took an income tax deduction for the theft loss.  In such case, the value of the recovered property… Read more