When is a theft or bad debt loss not deductible?
- January 2, 2020
- David Greene
- Comments Off on When is a theft or bad debt loss not deductible?
You can claim a theft loss as a deduction only if there is no chance of recovering any of the amount stolen. Here the IRS is probably lookiong at the possibility that the owner will have to pay restitution as part of his punishment. You can claim the theft loss in a later year after there is no possibility of the owner repaying any part of the money you lost.