Acquiescence to an abusive boyfriend’s theft won’t negate a theft loss deduction, according to the Tax Court.
A boyfriend of a business owner worked for her firm. Although she knew he was stealing money from the business, she remained silent because he was verbally and physically abusing her. He even threatened to kill her and her kids. Those are grounds to OK the write-off
(Herrington, TC Memo. 2011-73).