Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
franlozar
New Member

Can I claim a loss of $880. cash held in an account with a company for fuel oil, the owner died and the company ceased operation. No fuel oil or money reimbursement.

 
1 Best answer

Accepted Solutions
Hal_Al
Level 15

Can I claim a loss of $880. cash held in an account with a company for fuel oil, the owner died and the company ceased operation. No fuel oil or money reimbursement.

Yes, that is deductible as a bad debt.  It is reported as a short term capital loss on form 8949.

To enter, in TurboTax, type> bad debt, non-business <in the find box. Then click Jump to.


Reference: https://www.lawyers.com/legal-info/taxation/income-tax/deduction-for-non-business-bad-debts.html

View solution in original post

1 Reply
Hal_Al
Level 15

Can I claim a loss of $880. cash held in an account with a company for fuel oil, the owner died and the company ceased operation. No fuel oil or money reimbursement.

Yes, that is deductible as a bad debt.  It is reported as a short term capital loss on form 8949.

To enter, in TurboTax, type> bad debt, non-business <in the find box. Then click Jump to.


Reference: https://www.lawyers.com/legal-info/taxation/income-tax/deduction-for-non-business-bad-debts.html

Dynamic AdsDynamic Ads
Privacy Settings
v