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C
charlesinbedford
April 7, 2025
Question

I have a rental property. Was looking to rebuild a shed on my property. The builder took my $9k deposit but did not build and went bankrupt. Can I write off the loss?

  • April 7, 2025
  • 1 reply
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They were supposed to build in 2023 but went bankrupt in 2024 about May/June

    1 reply

    J
    JamesG1
    April 7, 2025

    In TurboTax Premium Online, report the loss of income-producing property.

     

    • Down the left side of the screen, select Federal.
    • Down the left side of the screen, select Deductions & Credits.
    • Click the down arrow to the right of Other Deductions and Credits.
    • Click to the right of Disasters, theft, and other property loss or damage.

    The loss was realized in 2024 when the bankruptcy was finalized.

     

    See also IRS Publication 584-B.

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