The software does what you tell it to do.

Have you read Pub 547?

https://www.irs.gov/pub/irs-pdf/p547.pdf

"Loss of inventory. There are two ways you can deduct a casualty or theft loss of inventory, including items you hold for sale to customers. One way is to deduct the loss through the increase in the cost of goods sold by properly reporting your opening and closing inventories. Don’t claim this loss again as a casualty or theft loss. If you take the loss through the increase in the cost of goods sold, include any insurance or other reimbursement you receive for the loss in gross income.

The other way is to deduct the loss separately. If you deduct it separately, eliminate the affected inventory items from the cost of goods sold by making a downward adjustment to opening inventory or purchases. Reduce the loss by the reimbursement you received. Don’t include the reimbursement in gross income. If you don’t receive the reimbursement by the end of the year, you may not claim a loss to the extent you have a reasonable prospect of recovery."

You might be considering this is business property instead of salable goods. I don't see where you ever addressed what was this inventory. Cars? Jewelry? Clothes? Jet skis?