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FDIC loss on deposit

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    #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?
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    #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?

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      #3
      The deposit was in excess of the FDIC limit.

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