FDIC loss on deposit

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  • Y2KEA
    Senior Member
    • Nov 2005
    • 344
    #1

    FDIC loss on deposit

    Client lost $4000 when Indymac Bank failed.The depositor would be given a Receiver's Certificate as proof of this claim and would receive payments as the assets of the bank are liquidated.
    If the client receives no additional funds, how would the loss be reported & deducted?
    Tags: None
    • Bees Knees
      Senior Member
      • May 2005
      • 5456
      #2
      Loss on bank deposits is a nonbusiness bad debt. See TTB page 8-6 for nonbusiness bad debts.

      BTW, how does one lose money when it is FDIC insured, even if the bank goes under?

        Comment

        • Y2KEA
          Senior Member
          • Nov 2005
          • 344
          #3
          The deposit was in excess of the FDIC limit.

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