I have a rental property. Was looking to rebuild a shed on my property. The builder took my $9k deposit but did not build and went bankrupt. Can I write off the loss?

In TurboTax Premium Online, report the loss of income-producing property.

• Down the left side of the screen, select Federal.
• Down the left side of the screen, select Deductions & Credits.
• Click the down arrow to the right of Other Deductions and Credits.
• Click to the right of Disasters, theft, and other property loss or damage.

The loss was realized in 2024 when the bankruptcy was finalized.

See also IRS Publication 584-B.