I gave a loan to my father in India. Unfortunately, he passed away. can I claim a non business debt deduction on my tax?

[Anonymous_]

I will page Champ @pk. Check back.

[pk]

@sgfaizani , I am sorry for your loss.

Yes , you can indeed claim "loss of Capital"  for noncollectable personal loan.  Here is a reference on the subject  for federal purposes-->  https://www.irs.gov/taxtopics/tc453

However, things may make it difficult to  sustain an audit are :

(a) loan to a related party

(b) documentation to prove  this was done at arms length

(c) prove Estate's inability to satisfy the loan  ( debts  of the decedent would normally be recognized by the Estate  before distribution of assets to the heirs).

(d) Hindu Succession Act  and Insolvency Acts  may apply here.  There is no Tax Treaty Effect here

Is there more I can do for you ?