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I have a client who lost $200,000 through a fraudulant scam. Can this be written off as a casualty and loss on schedule A?

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Level 2
last updated ‎May 13, 2020 1:51 PM
 
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Level 15
Level 15
last updated ‎May 13, 2020 1:51 PM

TCJA took away casualty losses unless its due to a federally declared disaster.

Was this an investment that ended up being a scam?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 2
last updated ‎May 13, 2020 1:51 PM

Yes, it was a scam.  The women told him she needed medical help for cancer treatments. The women who took the money from him went to jail  and his lawyer said he could write if off.  I wasn't sure if this situation applied. 

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Level 15
last updated ‎May 13, 2020 1:51 PM

Someone just hands over $200,000 to some stranger for cancer treatment?  I'm waiting for Paul Harvey to jump in and give the rest of the story.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 15
Level 15
last updated ‎May 13, 2020 1:51 PM

So the answer is no, it wasn't an investment. 

A few years ago casualty losses were still allowed, but the lawyer hasnt brushed up on tax law lately it seems.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪