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Lost Money to a Scam? Here’s How to Tell If You Can Deduct It

May 24, 2025

“Lost Money to a Scam?
Here’s How to Tell If You Can Deduct It”

To get my complete article
with all the details…

Scammers may have taken your money—but don’t let the IRS take your deduction, too.

Our newest article, Greed or Goodwill: Your Motive Makes a Scam Loss Deductible, breaks down exactly when scam victims can deduct their losses—and when they can’t.

Here’s how this article will help you:

  • Identify whether your scam loss is deductible.
    Learn the key factor the IRS uses to allow or deny scam-related deductions.
  • Understand the difference between profit-motivated and personal losses.
    Discover why sending money to a fake investment might be deductible—while helping a “loved one” in trouble is not.
  • Avoid common traps with real-life scam examples.
    We walk through common scams—pig butchering, phishing, romance, and more—and explain which ones the IRS views as deductible.
  • Get practical next steps for filing a theft loss.
    From IRS forms to documentation and deadlines, know what to do if you’ve been scammed.
  • Protect yourself and your loved ones.
    With scam losses of $5.7 billion in 2024, knowledge is the first line of defense—and the first step to recovery.

Don’t miss your chance to recover what you can.
This article could be the first step toward reclaiming thousands of dollars—legally and properly—on your next tax return.

CLICK HERE to read my completely new article titled:

“Greed or Goodwill: Your Motive
Makes a Scam Loss Deductible”

Filed Under: Filing tips, Investments, Losses, Tax Planning, Tax Policy

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