bsj224
Level 1
03-24-2020
02:03 PM
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Can a self-employed travel agent (Sch C) deduct the loss of cash (received from client and thought to have been transferred to the foreign travel agent) by wire fraud as a business expense on Sch C.
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Terry53029
Level 14
03-24-2020
03:31 PM
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Yes, but it should have been reported to police as a theft, so you have proof
bsj224
Level 1
03-24-2020
05:21 PM
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Thank you - yes it was reported to the police and investigated by federal authorities. Unfortunately there was no insurance.
BobKamman
Level 15
03-24-2020
11:30 PM
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I'm not sure about Schedule C. Casualty loss usually goes on Form 4684, then Form 4797 (or at least on the 1040 line for that). It makes a difference, of course, in SE tax. If Schedule C is the wrong place, and it makes a $5,000 tax difference, who pays the Section 6662 penalty?