I have a client who invested 30,000 out of his pocket into a business that was overseas in another country. No business was ever started. He was putting up capital to be part owner of this business. It turned out that this was a scam and whoever he invested the money with never returned it to him. He lost his whole 30,000 investment in this business. Can he write this off as a business loss? Or would this be on Sch D as an investment loss and write off 3,000 each year for 10 years? The thing that throws me off is that the investment is overseas. So I wasn't sure if he could write off an foreign investment loss. I have only one client who has foreign income.
Thanks!
GTS1101
Thanks!
GTS1101