A friend of mine wanted to borrow a large sum of money for emergency. Although it was sort of strange to ask, I told him yes, but he had to sign a promissory note (drawn up by WillMaker or some other software). Now many months passed but I never seen a dime of it. Can I write this loan as bad debt on my tax return?
2007-01-22 16:52:28 · 8 answers · asked by Ken Adams 2 in Business & Finance ➔ Taxes ➔ United States
You may have a nonbusiness bad debt. Your promissory note hopefully has a repayment time period. You can deduct the bad debt in the year the promissory note becomes totally worthless, that is, there is no chance of repayment.
The nonbusiness bad debt is deducted as a short-term capital loss subject to the $3,000 per year limit ($1,500 if married filing separately).
Attach a written statement to your return detailing the debt. This return will need to be mailed in.
2007-01-22 17:38:38 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
relies upon. Did Bernard loan the money to Susan, or to her new agency? Assuming you're outstanding, and it extremely is a bad debt, she comments it on Sch-D. there's a 3000 hassle, yet he can carry it forward. i do no longer use Turbotax.
2016-12-16 11:14:54 · answer #2 · answered by ? 4 · 0⤊ 0⤋
No , but you can take this person to small claims court.
2007-01-27 23:49:58 · answer #3 · answered by mkaustin 1 · 0⤊ 1⤋
nope...and the kicker is, depending in how much it was, if you wanted to claim it as a gift and it exceeded $11K, YOU would actually have to pay taxes on that amount.
2007-01-22 16:56:28 · answer #4 · answered by muskrat_h8r 2 · 0⤊ 2⤋
You would have to go to small claims court and "try" to sue them.
2007-01-29 14:15:36 · answer #5 · answered by kej 1 · 0⤊ 1⤋
Nope.
2007-01-22 16:54:22 · answer #6 · answered by bashnick 6 · 0⤊ 2⤋
no not a business debt
2007-01-22 16:55:17 · answer #7 · answered by q6656303 6 · 0⤊ 2⤋
No.
2007-01-22 16:55:09 · answer #8 · answered by dancin thru life 3 · 0⤊ 2⤋