Expenses paid by former s/h of closed corp

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Message Board Expenses paid by former s/h of closed corp

This topic contains 1 reply, has 2 voices, and was last updated by William Dewberry 1 week ago.

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  • #124789

    Taxpayer owned a corporation that provided services for seniors. While still in business, there was theft by a caregiver. The company was sold in March of 2016 and the corporation was closed. The taxpayer (former shareholder) had to pay the victim of the theft $40,000 in settlement, which was paid in 2018. Since the corporation was closed in 2016, is there any way that the settlement paid in 2018 can be deducted?

  • #125196
    William Dewberry

    I am certain you can claim a capital loss; how to make it ordinary is unknown to me.