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Level 2
posted Mar 5, 2020 7:02:07 PM

What form is used to claim a deduction for a Scam? I could not seem to use Achedule A, 1040.

0 4 633
4 Replies
Level 15
Mar 5, 2020 7:07:48 PM

Sorry but the Tax Cuts and Jobs Act eliminated that type of deduction for 2018-2015.

Level 2
Mar 6, 2020 8:54:07 AM

The Scam or Theft was for $50k plus.  It was reported to the FBI, who sent us to IC3 Crime Complaint Center.

No action taken.  I have the copy of the complaint, and all necessary backup.  Does this change your answer, or change the tax deduction?   Thank you fro your reply.

Level 15
Mar 6, 2020 9:00:45 AM
Level 15
Mar 6, 2020 9:14:45 AM

  See IRS Pub 547, pagr]e 5

https://www.irs.gov/pub/irs-pdf/p529.pdf
Theft loss deduction limited. For tax years
2018 through 2025, if you are an individual,
casualty and theft losses of personal-use property
are deductible only if the losses are attribut-

able to a federally declared disaster (federal
casualty loss).

 

However, if this is a loss from Ponzi type investment schemes then it might be deductible, again refer to page 5.