I made two loan investments through Nextseed. For 2024 I didn't get 1099-INT or -B statements like I normally do and the loans are uncollectable. How can I writeoff?

[TXLandlord99]

I do have the paperwork for the loans and I do have emails from NextSeed telling me the companies to whom I loaned money aren't going to pay. Can I take a deduction for these loans, and if so, where/how would I enter the info.

[ThomasM125]

You can deduct the loan as a non-business bad debt. It is not a business bad debts unless you are in the business of loaning money, as opposed to doing it as a side-job, where it is considered to be more like an investment. As such, it is deductible against capital gain income and up to an additional deduction of $3,000 per year. The unused amount can be carried forward to future years.

You enter the loss in the Deductions and Credits section of TurboTax, then Other Deductions and Credits, then Nonbusiness Bad Debt. Here is a TurboTax article where you can learn more.