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    Can a taxpayer claim the non business bad debt for being scammed by a contractor that never completed job in home? He never returned and homeowner paid him > $17,000

    Anglis
    Level 3
     
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    2 Comments 2
    qbteachmt
    Level 15

    It's not bad debt; it's personal theft loss and this is not deductible. See the IRS resources, such as:

    https://www.irs.gov/taxtopics/tc515

     

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    George4Tacks
    Level 15

    File a claim with your state contractors licensing agency. File at least in small claims court to establish a valid debt, then maybe you can claim a casualty loss due to theft. 


    Answers are easy. Questions are hard!