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Capital Loss?

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levidenum

Member
What is the name of your state? Oregon

I made an agreement with a Hobby Shop owner, I gave him $10,000, he ordered some items and put them on consignment for me. The agreement was I would get my original money back plus $50 per item sold, if the item sold for more than $50 we were to split the profit 50/50. The owner bought the merchandise, sold all of it and refused to pay me anything. I didn't get my $10,000 back nor any of the profit. I have been trying to contact him for over a year with no response and now his business is closed. Is there anyway I can claim this as a loss on my taxes? If yes, can I claim interest or the attorney fees (for writing letters) as a loss?

Thanks
 


tranquility

Senior Member
It would not be a capital loss. You may be able to deduct it under different theories, but you are going to need to see a tax professional to go over the requirements. Could it be considered a business? Did you *exaust* all remedies? Things like that. Under certain theories, sending a letter from an attorney to a person or business which is not insolvent is not going to be enough.
 

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