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Legal and Court Fees to recover a Bad Debt

I had a loss of about $150,000 as Bad Debt and have included on my 2017 1040 Schedule C.
I am trying to recover this loss and have a civil case against my business partner.
Where can I deduct my Legal Fees, Court Fees, airline tickets (court appearances) on my 2018 Schecule C

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1 Best answer

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Anonymous
Not applicable

Legal and Court Fees to recover a Bad Debt

then how did you have a business partner?     i'm not going to say the deduction on schedule c for 2017 was proper or improper,  that will be for the IRS to determine if it audits you.  those expenses would also follow the correct reporting of the bad debt.  if it is a schedule C deduction the legal fees would go on line 17 and you would need to create court costs on line 48 of schedule C which would carry to line 27a.  

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4 Replies
Anonymous
Not applicable

Legal and Court Fees to recover a Bad Debt

some additional info,   if you had a business partner why a 2017 schedule C rather than a 1065 (partnership return)

Legal and Court Fees to recover a Bad Debt

@HACKITOFF
My small home business is a DBA not a partnership.

Anonymous
Not applicable

Legal and Court Fees to recover a Bad Debt

then how did you have a business partner?     i'm not going to say the deduction on schedule c for 2017 was proper or improper,  that will be for the IRS to determine if it audits you.  those expenses would also follow the correct reporting of the bad debt.  if it is a schedule C deduction the legal fees would go on line 17 and you would need to create court costs on line 48 of schedule C which would carry to line 27a.  

Legal and Court Fees to recover a Bad Debt

Thanks HackitOff.
That is what I thought, a line entry.  It just seems too easy.
Used the wrong term, business partner is actually a sole customer that I extend credit for purchases.

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