We have a contract with a company for which they would buy money-producing websites and built an additional one, and then mange them to keep them producing. We would own the sites. The contract was for 200,000. They did not buy the websites they were to buy based on our contract but they did built one. We suspect the company filed or is about to file bankruptcy, but we are still trying to recover the initial investment. If the bankruptcy happens, can we deduct this huge loss? How much of this loss can be deducted? Over how long?
