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Tax deduction of money lost due to contractor not finishing job

HunterB15
Level 1

Contractor was hired and given down payment to start commercial building job. He cleared the land,

then left the country before beginning work on the building. Can I use what I paid him as a loss on the

2020 tax return?

Labels (1)
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2 Replies 2
sjrcpa
Level 15

If this was  a personal theft loss, no.


ex-AllStar
IRonMaN
Level 15

But the good news is, you have some extra basis in the land for whenever you sell it somewhere down the road.

I'm keeping this job. But I am selling surplus anvils on the side. If you are interested please call 867-5309