Where to deduct the loss on return if possible (not a personal casualty loss)?
  • Client informed that he will win $1m if he sends $5k to a specific address bank
  • Client provides investment account info to scammer and scammer withdrawals the $5k from client’s account based on client giving private personal account info
  • Client will be reporting the $5k as a Gross Distribution and is Taxable upon receiving form 1099-R from Investment account company
  • Client never hears from scammer again (no $1m)
  • Police report filed. Police tell client will probably never see the money again and doubts the prosecutor office will take the complaint because of the dollar amount
  • Client filing with homeowners insurance hoping for some type of recovery.