can i take a lose for a contractor who took deposit of 30000 and closed the business without ever starting work can not contact him or call

[willeeee]

filed a police report, reported to AG and wrote a demand for return of money no response

[Mike9241 · Accepted solution]

If it's related to business activities, such as rental property,  it's deductible. Complete Form 4684.

If this was personal, it's doubtful that the loss is deductible. A recent IRS ruling states that for a theft loss to be deductible, the transaction must be one entered into for profit. The taxpayer's motive determines whether the transaction qualifies as profit-oriented.

ccm 202511015

https://www.irs.gov/pub/irs-wd/202511015.pdf