Personal bad debts are deductible as a short term capital loss on Form 8949 which transfers to Schedule D in your tax return.
Under 'Stocks, Mutual Funds, Bonds, Other', indicate 'no 1099-B' and 'Add a Sale'.
On the 'Sales Info' page, the Sales Proceeds are $0 (or any amount of the debt you did collect).
The Cost Basis is the total amount of the debt. Leave 'Holding Period' blank and check the box 'Allow me to continue with incomplete info'.
Continue to the Summary Page.
Click this link for more detailed info and instructions on Reporting a Bad Debt.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
