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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?

chiodoinc
Level 2
 
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Just-Lisa-Now-
Level 15
Level 15

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

Was this an investment that ended up being a scam?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
chiodoinc
Level 2

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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IRonMaN
Level 15

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.

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Just-Lisa-Now-
Level 15
Level 15

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♥¸¸.•*¨*•♫♪