Submitted By: someone
Answered: July 22, 2019 3:09 am

I was scammed out of my retirement account (a victim of identity theft). Can I deduct the loss?

Alert the IRS, credit reporting bureaus, and other agencies that you have been a victim of identity theft. Determine whether this is a theft loss. Determine whether you can recover the funds. Unfortunately, if it’s a theft under state law and you can’t recover the money, you don’t get a tax break for it. For 2018 through 2025, no itemized deduction for a theft is allowed.

Tax Glossary

Accelerated cost recovery system (ACRS)

A statutory method of depreciation allowing accelerated rates for most types of property used in business and income-producing activities during the years 1981 through 1986. It has been superseded by the modified accelerated cost recovery system (MACRS) for assets placed in service after 1986.

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