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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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i gave 3,500 to someone who was recommend by a friend

Resolved Question:

i gave 3,500 to someone who was recommend by a friend who was doing principle reduction mortgages well I got taken for a ride person and company took off FBI handling case, figure will never see that money again but can I write it off at end of yea on my taxes as loss????how do you go about doing that???
Submitted: 5 years ago.
Category: Tax
Expert:  Lev replied 5 years ago.

Hi and welcome to Just Answer!

Generally you may deduct casualty and theft losses on your Federal income tax return.

A theft is the taking and removing of money or property with the intent to deprive the owner of it. The taking must be illegal under the law of the state where it occurred and it must have been done with criminal intent.

Seems as your situation may be classified as the theft loss.

Casualty and theft losses are reported on Form 4684, Casualties and Thefts - http://www.irs.gov/pub/irs-pdf/f4684.pdf . Section A is used for personal-use property, and Section B is used for business or income-producing property.

 

Let me know if you need any help or clarification.

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