Financial Theft / Bank Fraud

[JiminTN]

I was subject to bank fraud.  Can I deduct the financial loss?  How do I report the loss?  As far as I can tell, TurboTax only recognizes a loss in property value due to the loss.

[LudwigVan_fan]

Yes, you probably can deduct the loss.  Where on the return depends exactly on the type of loss/fraud.

Most types are deducted on Sch A as an itemized deductions.  However, if you made an investment, and people stole the investment money, it might be deductible as a capital loss.

Here is a link that you can start reading about losses, etc.

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

[barbaranau]

someone got into my bank account and took money by making it look like they accidently put momey in my account.  can I clame it? 

[LudwigVan_fan]

Apparently not.  This is from IRS Pub 547

Limitation on personal casualty and theft losses. Personal casualty and theft losses of an individual, sustained in a tax year beginning after 2017, are deductible only to the extent that the losses are attributable to a federally declared disaster. 

https://www.irs.gov/publications/p547

I believe this goes through 2025.