It depends. If it is a personal loan, you may claim nonbusiness bad debt as itemize deduction on Schedule A, if qualified. The 2017 Tax Cuts and Jobs Act suspended Employee Business Expenses deduction. If not, you can follow the steps below to enter business bad debt in Turbo Tax.
- Log-on to your TurboTax Home & Business software
- Click on the "Business" tab.
- Click on "Continue"
- Click on "I'll Choose What I Work on"
- "Business Income & Expenses" heading, click on "Update or Start"
