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I'm sorry to hear about your situation. If you can prove you were the victim of a documented fraud, you may be eligible to deduct your loss. It has to be a proven fraud and you need to be able to prove to the IRS that you have exhausted all legal means trying to recover the money. If you pass the test, the loss is fully deductible. When losses exceed taxable income, they can be spread over multiple years, backward and forward. The backward part works by filing amended returns for the previous three years. Hope this helps. --- MoneyCoach101
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