Prior to the pandemic, i booked a birthday party event at a restaurant for 2020. I paid amount in full. As a result of the pandemic, the restaurant closed and only refunded half of my payment back in 2022. Can i take a loss of payment on my tax return? If so, please explain.
You may deduct casualty and theft losses relating to your home, household items, and vehicles on your federal income tax return if the loss is caused by a federally declared disaster declared by the President.
https://www.irs.gov/publications/p584#en_US_201811_publink100067241
You may deduct casualty and theft losses relating to your home, household items, and vehicles on your federal income tax return if the loss is caused by a federally declared disaster declared by the President.
https://www.irs.gov/publications/p584#en_US_201811_publink100067241
Thanks for your response. I am not sure if it is applicable to my situation. I updated my post as well. Can i report a loss on a birthday event at a restaurant that i fully paid for but never happened and the restaurant only refunded me part of my payment?
I too added to my answer some IRS info. https://www.irs.gov/publications/p584#en_US_201811_publink100067241
No, it probably isn't deductible, but it depends on the reason for the birthday party. If the birthday party is related to your business, you can deduct the amount you spent as a business expense.
You would need to be in the business of throwing parties, or the party would have to be for a client or co-worker. Click here to learn more.
More likely this is a personal expense, a party for a relative or friend. In that case the only option would be the casualty and theft deduction sited by ee-ea above.