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Level 1
April 22, 2021
Question

Tax deduction of money lost due to contractor not finishing job

  • April 22, 2021
  • 2 replies
  • 7 views

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?

This topic has been closed for replies.

2 replies

sjrcpa
Level 15
April 22, 2021

If this was  a personal theft loss, no.

The more I know the more I don’t know.
IRonMaN
Level 15
April 22, 2021

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

Slava Ukraini!