Theft Loss Deductions Under the Tax Cuts and Jobs Act of 2017

Ian V. Buksunski, JD

The number of incidents of fraud perpetrated against individuals and the resulting loss amounts have both drastically increased in recent years. In 2018, the Federal Trade Commission reported approximately 1.4 million fraud incidents with a total loss of $1.48 billion (Paul Witt, Top Frauds of 2018, Federal Trade Commission, Feb. 28, 2019, https://tinyurl.com/3jzhcbab). By 2023, the number of incidents had increased to roughly 2.6 million, and the loss amount skyrocketed to more than $10 billion (Federal Trade Commission, “As Nationwide Fraud Losses Top $10 Billion in 2023, FTC Steps Up Efforts to Protect the Public,” Press Release, Feb. 9, 2024, https://tinyurl.com/2auvmn6h). These frauds ranged from scammers impersonating businesses (8.80% of 2023 reports), to government officials (4.23%), to potential romantic partners (1.19%), and nearly everything in between.