You may be able to claim the loss on your loan as a non-business
bad debt.
However,
to do so, the IRS requires that you take every reasonable measure to recover
the debt.
See Nonbusiness
Bad Debt for definition and requirements for deduction.
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 forward to future years
until the loss is consumed.
To
enter a non business bad debt:
Type in nonbusiness bad
debt in the search box, top right of your screen
Hit the Enter key
Click jump to nonbusiness
bad debt in the search results
Follow the prompts and online instructions
