Personal bad debt is not tax deductible.
Please click on the link below to further explain what changed with the new tax law, the Tax Cuts and Jobs Act of 2017 affecting years 2018-2025.
"The deduction for personal casualty or theft losses has been repealed in tax years 2018–2025, unless the loss occurred in a federally-declared disaster area.
Previously, uninsured losses exceeding $100 due to fire, theft, or natural disaster could be deducted if the total loss amount exceeded 10% of the AGI, regardless of location."
IRS Tax Topic 453 defines business bad debt and nonbusiness bad debt. Nonbusiness bad debt is not the same as personal bad debt from an unpaid credit card, for example.
