We have a large construction project on a multi-family apartment building in process which spanned multiple years. In the previous year taxes, I accounted for the costs to date as “Construction In Progress” as an asset on my balance sheet. The contractor ended up stealing deposit money without completing most of the work. Now I have an asset paid for on my books, but there is no asset in the real world. How do I account for the missing funds the contractor stole?
Thanks,
-Andrew
