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Tax deduction of money lost due to contractor not finishing job

HunterB15
Level 1

Contractor was hired and given down payment to start commercial building job. He cleared the land,

then left the country before beginning work on the building. Can I use what I paid him as a loss on the

2020 tax return?

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2 Comments 2
sjrcpa
Level 15

If this was  a personal theft loss, no.

The more I know, the more I don't know.
IRonMaN
Level 15

But the good news is, you have some extra basis in the land for whenever you sell it somewhere down the road.


Slava Ukraini!