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URL:  http://boards.fool.com/sounds-like-a-non-business-bad-debt-on-your-tax-29518864.aspx

Subject:  Re: Collateral taken Date:  9/2/2011  3:15 PM
Author:  ptheland Number:  113890 of 121572

Sounds like a non-business bad debt. On your tax return, it is reported as a short-term capital loss. There's an additional statement you need to attach to your tax return when claiming a non-business bad debt. Publication 550 has the details on that statement. http://www.irs.gov/publications/p550/index.html

--Peter
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