I made a personal loan to a business that defaulted in 2016

oscarss · ‎June 6, 2019

I made personal loan to a business. They paid for several years and in 2016 they defaulted and closed their business. Where can I deduct this loss on my personal return.

MinhT · ‎June 6, 2019

You may be able to deduct this loss as a capital loss on Schedule D if you have proper documentation.

Please read this article for more information:

http://www.creditcards.com/credit-card-news/loan-bad-debt-deduction-friends-family-1282.php

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

MinhT · ‎June 6, 2019

You may be able to deduct this loss as a capital loss on Schedule D if you have proper documentation.

Please read this article for more information:

http://www.creditcards.com/credit-card-news/loan-bad-debt-deduction-friends-family-1282.php

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Expert does your taxes

Do it yourself

Resources

Support

I made a personal loan to a business that defaulted in 2016