Hi guys,
I got question on Theft losses deductions. Last year, I got interesting life. First, my house got flood due to water pipe broke. Insurance paid me $28K. Then I decided to combine repair with home expansion. Unfortunately, I got criminal contractor. He is so much fraud with fake invoices, fake bank statement, even fake city inspector. In my neighbors, 6 families got similar situation. But he get all our 6 family money and ran away. I end up hiring another contractor to finish the job. The fake invoice is around $30K. The cost of hiring 2nd contractor cost me $60K since he did not finish the job. Although we reported to police, police took as criminal case. I doubted we can get any money back. So, I wonder can I took the $60K loss via theft. The P547 claimed that we can deduct after gains. Am I right?
Please help!
Tks a lot!
