Submitted By: someone
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

Capital

The excess of assets over liabilities.

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