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Category: Business Law
Satisfied Customers: 4634
Experience:  23 Years business & securities law, NY and FL bars. SEC all states.
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I paid Year 2000 tax, along with 6 other tax years in Feb 2009

Customer Question

I paid Year 2000 tax, along with 6 other tax years in Feb 2009 of this year. I filed a 1040x for 2000 with a $49,000 casualty loss (builder took money and then split town). I sued in April 2001 to go after a $10,000 builder's bond (which I discovered in 2001 to be a forgery so I stopped attempts at service). I hoped to collect something on the 10,000 bond but lawyer wanted money up front and told me there was only a small chance, NOT A REASONABLE CHANCE. Filing in 2009, 1040x, I was certain that I will not collect any reimbursement. IRS audit says that all of the deduction must be made in later year, when I made very little money. It seem to me that at most $10,000 could be moved to another year but even that was a desperation move, not like trying to collect on home insurance.
Submitted: 7 years ago.
Category: Business Law
Expert:  FLCORPLAWYER replied 7 years ago.
The deduction can be taken in the year you become reasonable certain that the loss is total and cannot be recovered. Clearly that was not the case in 2000 and I dont think you have any argument for 2000.

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