Tax Deductions Due to COVID related Complications?

Forum|Forum|5 years ago
January 16, 2021
1 reply
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Hello all. I had to leave my college campus quickly due to COVID and had to store my belongings in a storage locker before my flight across America. The storage costs are a lot and I was wondering if I could get any write offs or refunds to save money during taxes. Could I write it in the section for educational expenses? Is there a special section for COVID related issues? I am near broke and need the money. Any advice or help would be appreciated.

Hal_Al

Employee

There are no deductions or credits for what your describe.

SoLostHELP

Hi @Hal_Al - i was hoping you could help me out with my Covid related issue and let me know if i can deduct it and where to deduct from. I purchased an investment property in another state and planned on remodeling it to rent out or sell, whichever made more sense. Hired a contractor and paid him to buy all the materials and a payment deposit for his work. Covid shortly happened after that with a lockdown, contractor took off with my money and never refunded it nor did he finish the work. I couldnt rent it out either due to the COVID lockdown so ive just been at a monthly loss with all my cash sitting on this property and opportunity costs. Then during the Riots my investment property was broken into and the new materially i paid for all stolen and walls destroyed and windows broken among many other things- basically $60,000 worth of theft loss and vandalism/damage. I have NO insurance on the investment property. I decided to list it for sale this year at take a loss because i am just over this huge headache and now no one wants to buy it even at a 30% discount!!! At this point im just going to keep it on the market to eventually sell at a huge loss but is there any way i can take some of the loss off now because i need the money? especially because this is all related to covid so i feel i should be able to take a deduction. How can i write this off?

Oh i remember someone named @Carl11_2 helped me before too. If i could get both your inputs that would be greatly appreciated! Hopefully asap because i need to submit my extended 2020 taxes tonight lol

Critter-3

Sorry but there is nothing you can deduct now on the investment property.

You need to file a claim with the courts for the money paid to the contractor. Once you have determined that you cannot recover any of the money then that may be a deduction.