Cost of replacing missing securities. To replace your taxable securities that are mislaid, lost, stolen, or destroyed, you
may have to post an indemnity bond. You can deduct the premium you pay to buy the indemnity bond and the related
incidental expenses.

You may, however, get a refund of part of the bond premium if the missing securities are recovered within a specified
time. Under certain types of insurance policies, you can recover some of the expenses.

If you receive the refund in the tax year you pay the amounts, you can deduct only the difference between the expenses
paid and the amount refunded. If the refund is made in a later tax year, you must include the refund in income in the year
you received it, but only to the extent that the expenses decreased your tax in the year you deducted them.