Rec'd this from client:

In 2019, my C-Corp client that provides K9 Services paid an individual $93,000 for the purchase of large kennels for their K9 dogs. The person was going to build them. They disappeared before giving her the items and was MIA for quite some time. I filed the tax return and treated as assets not yet placed in service as we were not sure if they permanently disappeared.

She asked for me to amend the 2019 as she felt it was not collectible and wanted to claim the loss.

My client went to Mexico before COVID hit and found the person. She ended up getting him to provide her some items but it was only approx $1,200 in value. Below is her email explaining value.
"The value of the items are $1200 for veri-kennels for three (the kind you use on flights), $800 for a roll of fencing, some tools: two shovels, a socket set, a wrench set and a screwdriver set which was roughly $75. Of course he gave me no receipts so I researched the prices."

I am wondering if it is appropriate to amend 2019 and claim the loss or if we should take in 2020.

Given the info above:

My initial thought, This is not a theft loss, since the item was never built and then stolen, so I would think show it as a ST capital loss.on 4797, SP - 0-, CB - 93k in amended 2019 and $2,075 (1,200 & 800 & 75) as Other Income in 2020.

Thoughts/Suggestions?