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sdac91
New Member

When claiming a loss on a personal loan, do I only claim it once, or do I claim it every year it is not paid?

 
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PaulaM
Employee Tax Expert

When claiming a loss on a personal loan, do I only claim it once, or do I claim it every year it is not paid?

You would claim the loss one time in the year that the debt becomes worthless and treat as a short-term capital loss.

To deduct in TurboTax, type 'bad debt, non business' in the Find box of your program, then select the 'jump to' link. On the landing page, select 'Yes' then 'No' to the 1099-B question. Select 'Uncollectible Debt on the next page.

See also IRS and TurboTaxHelenaC's answer below.

https://ttlc.intuit.com/questions/3005740-where-do-i-take-the-tax-deduction-for-a-personal-loan-that...

https://www.irs.gov/taxtopics/tc453

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PaulaM
Employee Tax Expert

When claiming a loss on a personal loan, do I only claim it once, or do I claim it every year it is not paid?

You would claim the loss one time in the year that the debt becomes worthless and treat as a short-term capital loss.

To deduct in TurboTax, type 'bad debt, non business' in the Find box of your program, then select the 'jump to' link. On the landing page, select 'Yes' then 'No' to the 1099-B question. Select 'Uncollectible Debt on the next page.

See also IRS and TurboTaxHelenaC's answer below.

https://ttlc.intuit.com/questions/3005740-where-do-i-take-the-tax-deduction-for-a-personal-loan-that...

https://www.irs.gov/taxtopics/tc453

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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