topic Loss due to COVID closures in Deductions & credits

Loss due to COVID closures

IRSKMA — Thu, 04 Mar 2021 18:51:24 GMT

I rented a place to hold a wedding reception and placed a $5000 non-refundable deposit to secure a date.

Due to COVID restrictions/closures, we could not use this place. We contacted the property owner and

this is a no-refundable deposit. Is there any way to claim this amount?

Re: Loss due to COVID closures

MinhT1 — Thu, 04 Mar 2021 19:03:58 GMT

As this expense is for a personal and not business purpose, the forfeited deposit is not tax deductible.

Re: Loss due to COVID closures

Mike9241 — Thu, 04 Mar 2021 19:05:09 GMT

No it is a personal loss. if the venue was shut down so you couldn't hold it, have you contacted a news agency or TV station to report this.

Re: Loss due to COVID closures

Carl — Thu, 04 Mar 2021 19:20:12 GMT

I have seen situations such as this on my local news channels. After taking it to local news channels, those affected ended up getting anywhere from a total refund of their deposit, to at least a 50% refund. Apparently, taking it to local news does not reflect very well on the business, and to alleviate the negative impact the business will generally do what it takes to keep their reputation intact. Something to consider.