form 4684 can i use it for theft

Casualty and theft losses are not deducible on a federal tax return unless they occurred in a federally declared disaster area.

Hi dj

 

I have been the victim of scamming as well.  looking into the possibilities for claiming deductions.  the only seeming possibility if you were the victim of a ponzi scheme in which you were "investing" with the expectation of returns. you also need to have filed a police report ( I suggest FBI as well) and have records of your "investment " transactions and records and they need to match up with your actual withdrawals

@taxpayer7374 Sorry---theft and casualty losses are not deductible unless the theft was the result of being a vicim of a Ponzi scheme; casualty losses are only deductible if they occurred as a result of being in a federally declared disaster area.

the article seems to reach a different conclusion regarding Ponzi losses as long as the objective was to earn a profit. It seems to conclude that such a loss does not have to be in a federally declared disaster area.

https://www.journalofaccountancy.com/issues/2025/jul/deductibility-of-theft-losses-for-victims-of-certain-scams/ 

 

 

furthermore pub 547

Note that the personal-use property limitation for tax
years 2018 through 2025 does not apply to losses on in
come-producing property, such as losses from Ponzi-type
investment schemes