We paid a contractor for work that he never finished on a renovation project on our primary home.
We brought him to court and won and received his entire contractors surety bond but it didn't make us whole.
He filed for bankruptcy so couldn't pay. So now it seems like this is a non business bad debt that became totally worthless last year once we won our lawsuit and received his surety bond money. We had to hire a new contractor to finish the work.
Can I deduct the construction losses and non business bad debt from my taxes?
Since this was for our personal home, is this a deductible loss?
