If you consider the bad debt to be a business bad debt, then you have to deduct it on the business return to which it relates.
However, if you weren't in the business of loaning money, it is more likely the bad debt is a personal bad debt, in which case you would report it as a short term capital loss on your personal tax return. You can do so in TurboTax as follows:
1. Find the "Income and Expenses" menu option in your TurboTax program
2. Find "Investment Income" in the list of categories
3. Click on "Stocks, Mutual Funds, Bonds and Other"
4. Work through the program to find "Choose the type of Investment you Sold"
5. Choose the "Uncollecible Debt (Nonbusiness Bad debt)" option in the list of investments
6. Enter the information requested about your uncollected debt
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