I admit I posted this elsewhere but there was a mistake so this is much clearer.
I loaned some $ to someone whose return I am preparing (a friend so not being paid).
They are never going to be able to pay me back and they are insolvent but they do have enough basis between 2 or 3 assets for basis to be reversed to $0.
They are being depreciated as last quarter straight line. I consider the cancelation to have occurred the end of the 2nd quarter of 25.
I'm not seeing how this can be done in TT. I do know how in QB. I suppose worst case I can consider it to be the end of the year and then in 26 just delete the asset and reinput with $0 basis.
Any help would be greatly appreciated.
