Vanessa A
Expert Alumni

Get your taxes done using TurboTax

If you made a personal loan that is now completely worthless and you made all attempts to collect, then you would write it off as a non business bad debt.

 

To do so select the following:

  1. Deductions and Credits
  2. Non Business Bad Debt under Other Deductions and Credits
  3. Walk through the steps and answer the questions on the debt.

How to Report Non-Business Bad Debt on a Tax Return

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