I know this post is 3 years old, but I'm in this same situation. In my case, the contractor bankruptcy was closed out in February 2025, so do I take the bad debt deduction in my 2024 return (current filing) or next years (2025), since the debt became officially worthless in 2025? Second question - am I limited to the $3000 capital loss deduction per year? And if so, do I deduct $3000 each year going forward until it's all accounted for? Thanks
