Contractor theft from income producing property

[Cat-lady]

I got scammed by a Contractor hired to do remodeling of my rental property. I want to report this theft on form 4684, but when I access the form, it asks if my theft was due to a casualty or weather related incident. When I respond “no” it takes me out of the form and will not let me proceed.  What’s the deal?

[DoninGA]

A casualty or theft loss is not deductible on a federal tax return unless it occurred in a federally declared disaster area.

[Cat-lady]

Form 4684 Section B part 1 allows you to list thefts involving property used for income producing purposes. 

[Mike9241]

answer yes. a casualty would include a theft loss. you should also as a minimum file a police report. others you may want to notify are the BBB, your insurance, and possibly the attorney general in your state,

[Cat-lady]

Thank you. I will try that and see it allows me to access section B. I will have to read IRS Pub 547 to figure the loss. Nothing is ever cut and dry with the IRS!