No, its not an investment sale, its a write off of a bad debt. So its not on the Capital Asset Sales worksheet with other normal brokerage type sales. You start with the 8949 and it flows to the D (capital gains/losses) where you also see the bad debt button to add the explanation. The problem now is they seem stuck and can't be deleted or edited?? This is on another turbotax support article on how you do these entries:
How to report the loss
The actual task of reporting a bad debt is relatively simple. The steps are:
- Complete Form 8949 Sales and Other Dispositions of Capital Assets.
- Enter the amount of the debt on line 1 in part 1 and write the name of the debtor in column (a).
- Enter your basis in column (e)—the amount of money that has not been paid back.
- In column (d), write 0—the amount the borrower did not repay.
The IRS also requires that you attach a bad-debt statement to your tax return, explaining the details of the loan you made.
