is this a casualty loss?

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  • taxmom34
    Senior Member
    • Nov 2008
    • 732

    #1

    is this a casualty loss?

    relative moved to Louisiana in 2011. employer payed moving expenses. movers lost or destroyed his household furniture. refrigerator interior was destroyed, dishware broken, boxes of clothing found in Texas. bedroom and kitchen furniture lost. Moving company says "sue me". it's not known what happened, i don't think a natural disaster (like truck got caught in flood). is this something i can claim as a casualty loss. i can't find a definition to fit. any comments appreciated
  • ChEAr$
    Senior Member
    • Dec 2005
    • 3872

    #2
    Originally posted by taxmom34
    relative moved to Louisiana in 2011. employer payed moving expenses. movers lost or destroyed his household furniture. refrigerator interior was destroyed, dishware broken, boxes of clothing found in Texas. bedroom and kitchen furniture lost. Moving company says "sue me". it's not known what happened, i don't think a natural disaster (like truck got caught in flood). is this something i can claim as a casualty loss. i can't find a definition to fit. any comments appreciated
    Moving company evidently at fault and should reimburse, but we knew that.
    SO? Sue. Si? Si.. !

    After the judgement if not paid, then it's a loss.

    See?
    ChEAr$,
    Harlan Lunsford, EA n LA

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    • taxmom34
      Senior Member
      • Nov 2008
      • 732

      #3
      i was afraid it wouldnt work. thank you Harlan

      Comment

      • Burke
        Senior Member
        • Jan 2008
        • 7068

        #4
        Go to small claims court. They won't show. Default judgement to the plaintiff. Then claim loss.
        And IRS regs state, I believe, that you actually do not have to go that far, if you can document bona fide attempt to collect by other means. If the TP's know all these circumstances you post, then there has to be prior correspondence or something to base it on. Certainly report to BBB, police, maybe even attorney-generals' office in state where moving company is based.
        Last edited by Burke; 04-27-2012, 05:03 PM.

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        • FEDUKE404
          Senior Member
          • May 2007
          • 3646

          #5
          Careful of casualty definition

          These events definitely fall into a negligence (sue me!) scenario.

          Does the owner of the property have any personal insurance that might cover such a loss? Perhaps even the business if they contracted the work?

          As for fitting into the (tax definition) of a casualty loss, I'm not sure how well that would go over upon further review.

          "A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual."

          FE

          Comment

          • taxea
            Senior Member
            • Nov 2005
            • 4292

            #6
            It is a loss and I agree with both posts that speak to when it is appropriate to take it on the return.
            Be sure there is a police report filed and it should be taken when all avenues to collect have been documented..
            Believe nothing you have not personally researched and verified.

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