How can I deduct a lost home insulation deposit to a company that went out of business? TTax Home and Business 2016 doesn't seem to support this, although Home only may.

[scmurdock1]

Opus17 previously responded with a very helpful answer, but it didn't work for me on Home & Business 2016 (https://ttlc.intuit.com/replies/4655886). I tried adding the $200 loss through Investment Income: Stocks, Mutual Funds, Bonds, Other as Opus 17 suggested, but this section would only allow entries involving sales. (Please see attached document showing screen captures). I also tried entering the loss under Personal: Deductions & Credits: Casualties and Thefts, but received a message that TurboTax does not support such entries. (Please see screen captures in the same attached document). I am not sure how to proceed. - Thanks

[Lisa995]

@Opus 17

[Opus 17 · Accepted solution]

You can't deduct it as a theft loss because the theft loss has a deductible equal to 10% of your income.  In other words, if your income is $50,000; your theft loss must be more than $5000 before you can deduct anything.  Turbotax should allow the form, but maybe the "not supported" error message is because the loss is too small (in other words, right result but wrong error message).

To enter a nonbusiness bad debt, start the "Stocks Bonds and Mutual Funds" income section.  Click no to a 1099-B, click yes to "did you sell any investments and not get a 1099-B."  On the next page is a list of investment types.  One of the choices is "Uncollectible Debt".  Click that choice and then click Continue and answer the rest of the questions.

See picture attached