@GeorgeM777
Thanks for the response George. It is very unfortunate that turbotax does not allow for the attachment of supporting documents, when it is required for this form. Do you know of any other tax software that would allow me to attach and file digitally and not have to mail everything? Will it be a major audit risk if I don't attach a supporting document for this loss claim? What other approaches could you use.
Is there any other way I can reflect this loan loss in my personal taxes?
I made two loans. One has permanently lost all principal. The other loan has repaid some recovery but 80% of the loan is permanently lost. Can I claim as a short term capital loss the 80% of the second loan that is permanently lost?
Is there a way I can classify this as a business bad debt? Maybe as a lender, since I made 5 loans to this company and it relates to real estate, and I have some real estate rental properties as well? Wondering what strategies I can use to maximize deductions for these loan losses, particularly against active w2 income.
Thanks!
