tax deduction for services paid but never received?

Deal Score0

i paid a debt management company 892.00 but never received services. can i claim this as a loss

  1. Reply
    September 14, 2012 at 1:59 pm

    Many “debt management” operations are scams. As such, any losses would be treated as fraud or theft and would come under the casualty loss deduction. However the limitations are substantial. You need to deduct $ 100 and then 10% of your AGI from the loss. Anything remaining is deductible if you itemize.

  2. Reply
    September 14, 2012 at 2:20 pm

    Hi, bostonia is correct! But, you might just consider the services rendered if it was for debts of your business or trade and deduct it as an expense reducing the taxable income. Then get a big guy and go visit the management company, if that won’t work getting your money on your own toughness, then the next stop is the police station, fill out a report and charge them with fraud. Good luck!

  3. Reply
    September 14, 2012 at 2:54 pm

    As an alternative, you may be able to treat the loss as a bad debt and write it off as an investment loss. However, you would have to make a good faith effort to collect the debt.

    Leave a reply

    Register New Account
    Reset Password