Discussion:Personal Bad Debt

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Discussion Forum Index --> Tax Questions --> Personal Bad Debt

Barbeque17 (talk|edits) said:

23 March 2007
I have a client with $25,000 in personal bad debt (not loaned to a business) that will never be repaid. Any thoughts on how I could go about deducting this on his individual?

Mtmckeecpa (talk|edits) said:

23 March 2007
http://www.taxalmanac.org/index.php/Discussion:Nonbusiness_bad_debt_for_2006

Kevinh5 (talk|edits) said:

23 March 2007
MTM, that post reminded me that we haven't heard from Ex-IRS in awhile. Maybe he's busy doing taxes?

Barbeque17 (talk|edits) said:

23 March 2007
Or back sending out IDR's...

Barbeque17 (talk|edits) said:

24 March 2007
One more twist to this one guys, the loan was to his nephew. Any thoughts? Still ST Cap loss?

Kevinh5 (talk|edits) said:

24 March 2007
Better go through the actions of trying to collect first. i.e. demand letter, small claims court (or regular court if too big in your state for SC). Judgement, garnishment, etc.

Kevinh5 (talk|edits) said:

26 March 2007
Discussion:Personal Bad Debt deduction - Related Party

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