A taxpayer claimed that in 2015 she sustained a deductible theft loss of approximately $2.5 million, which resulted from her ex-husband’s refusal to transfer marital property awarded to her in their 2008 divorce. She further argued that the theft loss generated a net operating loss in 2015, which she attempted to carry forward to 2016 and back to 2013 and 2014. While the court noted it was true that the ex-husband consistently ignored court orders to transfer assets to the taxpayer, the taxpayer wasn’t able to prove a theft had occurred and the court ruled against her. (Bruno v. Comm., TCM 2020-156)
CPAs, get four hours of fraud CPE with our 2020 Fundamentals of Fraud Prevention and Detection On-Demand Webinar. Click here for more information.