Question

We lost money to a company that was doing work on our roof. They are in bankruptcy court and our roof is not complete. How and where do I report this loss?

Paid for a job the job was partly done then the business went bankrupt and the people took all of our money. Everything is in bankruptcy court.

Employee

Unfortunately, nowhere. Personal losses are not deductible.

However, when you do get the roof done by another roofer, you can include what you paid to the first roofer in your cost basis for the new roof.

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