Good morning everyone:

A banker told me this story recently, and I can't prove the facts. I'll appreciate any help.

1. The bank lent $400,000 to a business, to purchase a mini-warehouse.

2. Customer was arrested and convicted of drug dealing and money-laundering.

3. The Justice Department abrogated the bank's lien and took possession of the property.

4. The bank's tax specialist says it cannot write-off the loan for tax purposes; that the seizure makes the transaction illegal from day one, and illegal transactions are not tax-dedcutable.

If you have any knowledge of this situation, please write, call, or come by for a visit. Thanks everyone.

Regards,
Wayne Barnett
Wayne Barnett Software
877-945-4344
wbarnett@barnettsoftware.com

I'm sorry, I didn't make the first post clear. What I'm trying to determine is the tax-deductability of losses produced by asset forfeiture.

Regards,
WB