You can write it off as a capital loss in the following manner.
- Go to Investment Income, Stocks, Mutual Funds, Bonds, Other.
- Answer NO to the 'Did you receive a 1099-B for this sale'.
- When you begin to enter the sales information, the cost (basis) is the amount of your worthless loan and the proceeds are what you have received on the loan, $0.
- The description should have the name of the debtor/loan info.
- Date Sold is the day it became worthless. Must be in 2024 to file this year's return.
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