Huh? Wha?

Update 2009-02-10: seems I'm repeating myself. Since one of my first posts was titled "Huh?" I am retitling this one.

According to TurboTax™, I can "...deduct the loss of property resulting from a theft. To qualify, the theft must be illegal and must be done with criminal intent" (emphasis theirs).

Maybe I'm reading this wrong, but this indicates that theft, in certain circumstances, might be legal. What would those circumstances be? Is this just some TurboTax™ employee being a little cheeky about the role of the IRS?