I have given a loan(s) of approximately $60,000 over the years to a local small non-profit organization. I and the organization had expected to repay the amount. However, the huge financial burned the COVID period put on this organization, I doubt the small non-profit now will ever be able to repay. If I decide to forgive part or all of this loan, how would be the best way to deduct that and put it in my tax return? If I do the entire amount, it would exceed my probably annual AGI, before it is applied. Would it be better to break it up over several years, or, would it be better to consider it non-business bad debt? What is the best way to proceed. I probably would not do this, until the 2025 tax year, so it would be applied to the 2025 tax return.
