Partial return of a restaurant event payment question

[TaxLearner]

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.

[ee-ea · Accepted solution]

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

[TaxLearner]

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?

[ee-ea]

@TaxLearner 

I too added to my answer some IRS info.   https://www.irs.gov/publications/p584#en_US_201811_publink100067241

[JulieS]

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.