Discussion:Ebay/internet fraud
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Discussion Forum Index --> Tax Questions --> Ebay/internet fraud
| 2 March 2006 | |
| A new one for me. Had a client that started out on Ebay buying a tractor for his farm operation. Somehow he let himself get tricked into buying it off Ebay and he and the "seller" started emailing back and forth and settled on a price of $5000. for this tractor. My client wired the money to the "seller's" account and you can guess the rest of the story---my client is out the $5000. and no tractor. Of course, he has no way of getting the money back because he didn't do it through Ebay. Can my client take the loss and what form would I take the loss on--4797? | |
| 2 March 2006 | |
| Sounds like felony theft to me. Has he made a police report. If the farm is a business. It's a business loss if not, it goes on Sch A, theft loss. | |
| 4 March 2006 | |
| http://www.ic3.gov Have him report the crime here. This will report it to the FBI. Also give a report to the police, so he has backup for the loss taken on the return. There is a special place in the afterlife for these kind of criminals. | |
| 5 March 2006 | |
| Gardner
is the site you quoted because this is a computer crime? Just curious | |
| 5 March 2006 | |
| Yes, it is for reporting internet crime, be it fraud, hacking, id theft, theft of trade secrets. | |
| 8 March 2006 | |
| I would not trust wiring the payment directly to anyone except through paypal with Ebay. | |
| 8 March 2006 | |
| Infotax square:
You can claim the loss only if he reported to the concern department for theft or felony. You can either take it on sch 'A' if personal or on business return. | |
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