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Submitted By: someone
Answered: February 6, 2018 8:58 pm
Answered: February 6, 2018 8:58 pm
We were embezzled to the tune of $167,000. The embezzler is now in prison. Can we deduct this loss?
If the loss occurred in 2017 and it’s a personal loss, it may be deductible as a theft loss. The loss is treated as an itemized deduction allowable only to the extent it exceeds 10% of adjusted gross income. Starting in 2018, there is no deduction allowed for personal theft losses. Of course, business losses continue to be deductible.
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Tax Glossary
Estimated tax
Advance payment of current tax liability based either on wage withholdings or installment payments of your estimated tax liability. To avoid penalties, you generally must pay to the IRS either 90% of your final tax liability, or either 100% or 110% of the prior year’s tax liability, depending on your adjusted gross income.
