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Visitor I

Financial Theft / Bank Fraud

I was subject to bank fraud.  Can I deduct the financial loss?  How do I report the loss?  As far as I can tell, TurboTax only recognizes a loss in property value due to the loss.

1 Comment
Catalyst V

Financial Theft / Bank Fraud

Yes, you probably can deduct the loss.  Where on the return depends exactly on the type of loss/fraud.

 

Most types are deducted on Sch A as an itemized deductions.  However, if you made an investment, and people stole the investment money, it might be deductible as a capital loss.

 

Here is a link that you can start reading about losses, etc.

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