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I acquired an inventory for a business start-up. The owner of the building died. An executor wrongly sold off the inventory and did not turn over the funds. The reasoning, if the person would respond, would be they thought the inventory was owned by the estate. Not true and capable of proof. Is there an expense one could claim for the loss. It is a substantial amount and over $100,000.

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    Hi Kagan. For tax questions, you should specify where you are (U.S., Canada, etc.) – Chris W. Rea Jun 4 '10 at 16:59
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    You need a lawyer. – Michael Pryor Aug 9 '10 at 0:31
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Generally speaking, if a business loses money for whatever reason, then that reduces the profits of the business which reduces the tax payable.

However if you were holding the assets on a personal basis prior to incorporating the business, the position may become more complicated. For that kind of money some professional advice may be worthwhile.

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I am not a lawyer. In the United States, this does not look like theft to me. If the seller acted in good faith, theft does not apply. It seems that the purchaser of the inventory is in receipt of stolen goods. These can be recovered from the purchaser (the police will assist). The purchaser then has some recourse against the seller.

  • Huh? It's either theft (and the police may help recover), or it's not. Which are you arguing for? – bstpierre Aug 9 '10 at 1:14

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