topic I was a victim of a debt consolidation program that is currently going through the courts. I lost $5000. Is this deductible in Get your taxes done using TurboTax

I was a victim of a debt consolidation program that is currently going through the courts. I lost $5000. Is this deductible

vanparyskelly — Tue, 03 Feb 2026 13:03:58 GMT

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Re: I was a victim of a debt consolidation program that is currently going through the courts. I lost $5000. Is this deductible

Mike9241 — Wed, 05 Feb 2025 17:25:27 GMT

Re: I was a victim of a debt consolidation program that is currently going through the courts. I ...

SusanY1 — Wed, 05 Feb 2025 17:26:11 GMT

This type of loss is generally considered a loss from theft. If this was a personal debt, it is not deductible on your federal tax return. If this loss is related to a business, it may be deductible as a loss on your business return.

Casualty and theft losses are only deductible when caused by a federally declared disaster.