maglib
Level 10

Business & farm

You would want to read this. just a note you claimed it was a personal loan so it must be completely worthless. You would do thos within the investment section of turboax. 
https://www.irs.gov/taxtopics/tc453


and yes in the year you have written loan off you must send a letter to the debtor as wrote off of the loan is income to the borrower which would be reportable.  You must send a 1099-C to borrower. 

 

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I am NOT an expert and you should confirm with a tax expert.