I paid a general contractor a down payment of 87k for an addition to my home. The 87k comprised $76,250 as the initial down payment and demanded another 10k after the demolition in order to continue the project. The project never continued. I am currently suing him and we expect to get a judgment in my favor since he cannot afford a lawyer, but there is no judgment yet. We also do not expect, even with the judgment, to be able to get any of the money back; i.e. he spent it all.
Can I claim this as theft on my tax return, and if so... what documentation will I need for support?
