Can I claim deposit to subcontractor that didn't complete work as an expense? Rental destroyed in Fed dec disaster 2020. Sub con took 50% deposit then closed business?

Single family home -rental destroyed in9/2020 In July 2021 we hired a cabinet company, signing an agreement for fab and install  of cabinets and made a 50% deposit (5 figures). Two weeks later we were notified he was closing business. Promptly shuttered the business, departed his residence, and fled the state. We were unable to locate to serve him for a civil case. Unable to recover funds and incurred fees filing court case and for process server. Rental rebuild will be in May 2022. Filed 1033 to defer recognizing insurance proceeds.