Grandparent Scammed via Telephone Scare - Casualty Loss?

Forum|Forum|5 years ago
December 16, 2020
2 replies
23 views

Grandmother got a call that grandson had been in a serious accident and was going to jail unless they could put up $32K. They sent a courier to pick up the money. Obvious scam and police have been notified and investigating. Is this a deductible Casualty Loss? Appreciate any help. My searches have been yes and no. Attempt to try out by filling in 4884 didn't work. Appreciate any assistance.

Lacerte Tax

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

TCJA took away casualty losses unless it was from a federally declared disaster.

Just-Lisa-Now-

Answer

Intuit Community Champion

TCJA took away casualty losses unless it was from a federally declared disaster.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

L

lovetaxesAuthor

Level 4

I believe I posted my thank you in the wrong place, Lisa. Many thanks for taking the time to assist me with this issue. The responses on the internet were all over the board but I'm happy with your response. Have a great Holiday Season followed by an even better tax season. Bob Bellerose, EA

George4Tacks

Level 15

There are several hurdles to this $32K loss

1. $100

2. 10% of AGI

3. Standard deduction vs whatcha can come up with to add to the net from 4684.

Look at the 4684 and see what the net is there.

Look at the Schedule A and see what you are getting there.

I had a neighbor who (a) was told by Walmart that it was scam and they would not sell him the green dot card and (b) he stayed on the phone & was convinced to go to another store and (c) he never picked up the phone call from his wife who had figured out it was a scam. 67 year old.

Answers are easy. Questions are hard!

L

lovetaxesAuthor

Level 4

Many thanks for taking the time to respond, George. Haven't had a "Casualty Loss" in years and I was aware that the TJCA changed the rules for such losses.

Sincerely,

Bob Bellerose, EA

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