Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Can a taxpayer claim the non business bad debt for being scammed by a contractor that never completed job in home? He never returned and homeowner paid him > $17,000

Anglis
Level 3
 
0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

2 Comments 2
qbteachmt
Level 15

It's not bad debt; it's personal theft loss and this is not deductible. See the IRS resources, such as:

https://www.irs.gov/taxtopics/tc515

 

*******************************
"Level Up" is a gaming function, not a real life function.
George4Tacks
Level 15

File a claim with your state contractors licensing agency. File at least in small claims court to establish a valid debt, then maybe you can claim a casualty loss due to theft. 


Here's wishing you many Happy Returns