Pvpastar
New Member

Theft by email scam

In 2015 while purchasing a house my real estate agent's email was hacked and used by scammers to falsely advise me to wire a $15,000 deposit.  The theft was subsequently investigated by the state police.  I filed a lawsuit against the real estate firm (they claimed to have "state of the art" internet services") and subsequently settled for $7,500 after filing a lawsuit.  The $7,500 settlement was reported on a 1099misc.  Since the money lost was from a Roth account, the taxes had already been paid.  If I report the 1099misc, it seems like I will be double taxed.  I never declared a deduction for the original loss because of the ongoing investigation and possibility of recovery through lawsuit.