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Business & farm
If you loan money to a client, supplier, employee, or distributor for a business reason and you’re unable to collect the loan after attempting to do so, you have a business bad debt, which can be entered as an expense of the business.
To enter the bad debt in TurboTax, please follow these steps in your return:
TurboTax Self-Employed (Online)
- Click on Income & Expenses and then click the Start/Revisit box in the Self-Employment section.
- Click Review next to your business.
- On the Here's your [business] info screen, click on the box Add expenses for this work.
- On the Tell us about any expenses screen, mark the box next to Other Miscellaneous Expenses and click Continue at the bottom of the screen.
- On the next screen, enter information on the bad debt.
TurboTax Home& Business (CD/Download)
- Click on the Business tab > Continue > I'll choose what I work on
- On the Let's gather your [business] info screen, click the Start/Update button next to Business Income and Expenses.
- On the screen, Let’s gather your business info, in the Business Income and Expenses section, click the Start/Update button.
- Continue to the Here's the business info we have so far screen. Click on the Edit box next to the business.
- On the Your [business type] Business screen, in the Business Expenses section, click the Start/Update box next to Other Common Business Expenses
- Click Start/Update box next to Other Miscellaneous Expenses.
- Enter the information on the next screen.
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January 13, 2020
2:59 PM