Discussion:Business Bad Debt Reporting on 1040
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Discussion Forum Index --> Advanced Tax Questions --> Business Bad Debt Reporting on 1040
Discussion Forum Index --> Tax Questions --> Business Bad Debt Reporting on 1040
| 24 March 2008 | |
| I have a business bad debt to report -
I am wondering how this transaction gets input and reported on the tax return - I am using Lacerte - I know a non business bad debt ends up being treated as a short term capital loss and shows up on the "other income" line as a negative number - this type of transaction seems easier to report because the Schedule D section of the software has a box for "non business bad debt". I am assuming the that the Business Bad Debt would show up on the "other income" line as well - I am just not sure how to put it on that line by reporting it on another form - perhaps I am only required to input the business bad debt direclty on the "other income" line. Any input would be helpful Thanks so much! | |
| 24 March 2008 | |
| Seems to me that a business bad debt really cannot be deducted on a 1040 unless it is reported on a schedule C. Otherwise it is short term capital loss. In my case the business is gone and the individual had to pay off the loan that he previously guaranteed on a corporation that folded. The corporation did not have the cash to pay the loan. | |
| 24 March 2008 | |
| Can someone who has dealt with this before please lend some practical guidance on this. thx | |
