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Returning Member
posted Dec 28, 2019 4:30:39 AM

I have a non-business bad debt note and a default judgement for the entire debt. Can collection costs such attorney cost be added to the cost basis on form 8949?

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1 Replies
Level 5
Dec 28, 2019 3:36:07 PM

it's a short term cap loss and you can't add costs to the basis to create a larger loss.....used to be able to deduct those costs as misc itemized deductions on Sch A but not after tax reform.