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New Member
posted Feb 3, 2020 12:28:34 PM

So I am trying to deduct nonbusiness bad debt. I have tried following the other items people have posted on here but it doesn't give you an option for bad debt just sell?

When I jump to the 1099 it doesn't give you an option for bad debt just selling of stocks and bonds. Can someone walk me through this with detailed instructions. I've tried looking up the answer on how to do it on Google but I cant get anywhere with that. Something must have changed on this year's version.
Thanks

1 4 1099
1 Best answer
Expert Alumni
Feb 3, 2020 12:49:48 PM

To report the information for a non-business bad debt it is similar to reporting a sell of stock.

 

When it asks if you received a 1099-B the answer is no.

 

The type of investment is Other

 

How did you receive this investment?

Purchase

 

Description

Non-Business Bad Debt

 

Date Sold or Disposed 

A date in 2019 that you decided the debt was worthless

 

Proceeds

$0

 

Cost or other Basis

The amount of the Loan

 

Link with more information on How to Report Non-Business Bad Debt

 

 

4 Replies
Expert Alumni
Feb 3, 2020 12:49:48 PM

To report the information for a non-business bad debt it is similar to reporting a sell of stock.

 

When it asks if you received a 1099-B the answer is no.

 

The type of investment is Other

 

How did you receive this investment?

Purchase

 

Description

Non-Business Bad Debt

 

Date Sold or Disposed 

A date in 2019 that you decided the debt was worthless

 

Proceeds

$0

 

Cost or other Basis

The amount of the Loan

 

Link with more information on How to Report Non-Business Bad Debt

 

 

New Member
Jul 5, 2020 9:24:53 AM

Diane - I'm in the same situation as Nicole. I tried to duplicate the steps you outlined, but those options do not appear in my version. Can you please try to duplicate on your end? Or if it is working appropriately for you (and it might be user error), please write even more detailed steps. 🙂

Level 15
Jul 5, 2020 9:35:49 AM

@djsmu   What version do you have?  You need to use online Premier or higher or any of the Desktop programs.  I can try to get a screen shot.  Did you find where to enter sales?

 

Start here,

Federal Taxes Tab (Personal for Home & Business)
Wages & Income
Then scroll down to Investment Income,
Then Stocks, Mutual Funds, Bonds, Other - click Start or Update

Level 15
Jul 5, 2020 9:51:26 AM

I made 4 screen shots.  Can you find these?  Go to Federal - Wages & Income at top - Then scroll down to Investment Income.