I had a cash loss of $8124 due to Phishing by a hacker posing as Apple Customer Service to help with my Apple account. How do I report this cash loss as my business loss?

Forum|Forum|6 years ago
February 22, 2020
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TurboTax Self Employed Online

ColeenD3

You can enter the cash theft from your business accounts in the Other Miscellaneous Expense section of the Business Expenses for your business.

The Internal Revenue Service defines theft as any crime involving "the taking and removing of money or property with the intent to deprive the owner of it." The definition covers burglary, robbery, embezzlement, extortion and even blackmail. The taking of money through fraud or misrepresentation also counts as theft if the action violates state or local law. Filing a police report helps you document the theft in the event the IRS asks you to substantiate your deduction.

You will need to attach Form 4684.

Claiming the Loss

For losses involving business-use property, refer to Publication 584-B. These workbooks are helpful in claiming the losses on Form 4684; keep them with your tax records.

nasharagamAuthor

Thanks much for the tip... however, the 4684 Form doesn't give me a way to describe my cash losses in business. It only talks about federal disaster losses. Is there some other Form I need? Also I haven't at looked at the Pub 584 or something yet. Perhaps that will explain... ?

Best, Nash

ColeenD3

Part B is for businesses. The form is a little unwieldy but think of your loss as a physical object. The event was fraud. Your FMV before was the amount that was taken, the FMV after was zero, since $8124-$8124 is zero.