You have a bad debt. A bad debt is deducted as a short term capital loss. In TurboTax (TT), type> bad debt, non-business <in the find box, then click on "jump to". That will take you to the entry point.
Lawyer fees and other expenses are no longer deductible, under the new tax law. Even under the old law, they were only deductible as a Misc. itemized deduction subject to the 2% of AGI threshold.
One requirement to write off a bad debt, is that it be noncollectable. It appears that you meet that criteria. If you later do collect it, you will have to report the money as income.
