Bad Debt from non-biz investment (Form 8949)

[thurgr]

i lent a business $150k and this is now bad with the company being 6 months overdue & no intent to repay. When I add it on form 8949, i get a pretty small deduction (~$600). Is that due to a cap on losses like these? If it is, will I be able to use this deduction against income for years to come?

[PattiF · Accepted solution]

Yes, there is a yearly limit on capital losses. It is $3000 a year. The capital Loss Carryover Worksheet will show the amount that is carried forward. 

IRS Capital Gains and Losses

[thurgr]

Thank you!