Yes, you can claim the lost money as a non business debt. A nonbusiness bad debt is reported as a short term capital loss, subject to the
$3,000 limit per year, the remaining amount is carried to the future years for you. Here's a data entry:
- Federal
Taxes
- Wages
& Income
- Investment Income
-
Stocks,
Mutual Funds, Bonds, Other - indicate that you have not received 1099-B from
financial institution and select "Uncollectible Debt (Nonbusiness Bad
Debt)" as the type of investment, follow the prompts
Note: You
will have to upgrade to Turbo Tax Premier to report this...
