Investment Scam

[Unregistered]

Taxpayer Invested $9000 In Online Business
It Was A Scam. Lost All Monies
Borrowed Money And Paid Interest On The Funds For Next 2 Years
Can He Just Use Sch D And Capitalize All As Start Up Expense And Show A Loss On D

[JON]

Casualty

or theft loss- does that work better-it should..

[Unregistered]

Investment Scam

I Realize I Worded That Wrong
Would It Be Better To Capitalize As Start Up Expenses Or Use Sch D For Capital Loss?

He Doesn't Itemize So Sch A Casualty Loss Is Not An Option Anyway
Thanks

[Bees Knees]

TTB, page 8-18 under the heading "What if the Business never Starts?" it says, "Costs incurred in an attempt to acquire or begin a specific business are capital expenses and can be deducted as a capital loss."

[Unregistered]

Investment Scam

business never started
I'm having a melt down here on something that is so simple
should I recover the cost on Sch C over 5 yrs
or Sch D

[Unregistered]

Investment Scam

my sister just came in and recognized my meltdown and said casualty for business would be 4797 thus capital loss.
simple!!!

[jainen]

investment interest expense

What was the actual time sequence? He borrowed $9000 and invested it in a business that never opened. He then paid interest for two years while he retired the loan. Sounds like a capital loss in the first year with two more years of investment interest expense.