Long time physician client was tired of the grind and he took some time off to start a Jewelry business in a small SE Asian country.
They took him for about 100K in inventory (stones, etc.), equipment, precious metals, and they even ran amok with his credit card. He is also out about $25K in travel expenses.
The client insists that he was "open for business" but had no sales. I seriously doubt he was ever open for business.
If he insists, in writing, that the travel was 100% business, ordinary, necessary, reasonable, etc. and had no element of personal recreation, do you take the travel expenses?
I'm also thinking it's a capital loss reported on Schedule D?