by Noah Green CPA CFE | Jun 20, 2026 | Scam & Theft Loss Deductions
The short version A theft or fraud loss file needs more than a police report and a dollar total. Before you file or amend, the file should show what property was stolen, that the loss fits a tax-recognized theft theory, when you discovered the loss, whether...
by Noah Green CPA CFE | Jun 20, 2026 | Scam & Theft Loss Deductions
The short version Form 1040-X is a filing mechanism. It is not a strategy by itself. If you later discover that a theft, scam, or fraud loss may have belonged on an earlier return, an amended return may be the right way to correct that year and claim a refund. But an...
by Noah Green CPA CFE | Jun 20, 2026 | Scam & Theft Loss Deductions
The short version For an individual, IRC 165 does not treat every stolen dollar the same way. A theft loss connected to a trade or business has one path. A personal theft loss has another, narrower path. Many scam-loss questions turn on the middle category: a loss...
by Noah Green CPA CFE | Jun 20, 2026 | Scam & Theft Loss Deductions
The short version A Ponzi scheme loss and a personal scam loss can feel similar because both involve deception, missing money, and a victim who acted in good faith. The tax treatment can be very different. The special Ponzi safe harbor is not a general rescue rule for...
by Noah Green CPA CFE | Jun 20, 2026 | Scam & Theft Loss Deductions
The short version A crypto scam loss is not automatically deductible just because the platform was fake, the wallet address was controlled by a scammer, or the funds cannot be recovered. For an individual, IRC 165 usually asks whether the loss fits one of the allowed...
by Noah Green CPA CFE | Jun 20, 2026 | Scam & Theft Loss Deductions
The short version A theft or scam loss is not deductible just because the money is gone from your account. Under IRC 165, timing depends on when the loss is sustained, and the reasonable prospect of recovery rule can delay that year. For theft losses, IRC 165(e)...
