My DH worked for many years for a company which went bankrupt. During the 2009 year he loaned the company about $5,000. The company went through bankrupcy proceedings in 2010, and listed this debt in a letter from the bankrupcy lawyers. The debt is listed in my DH's business name not his personal name. We then received a latter from the bakrupcy attorney that all the assets had been sold and that we were to recive nothing.So, I want to deduct this as a bad business debt. This was not income owed, but money he loaned to the owner of the company. We also have a letter from the owner stating the nature of the loan. Basically my DH loaned the money so the company coud fullfull the orders and keep the clients happy. It didn't work.Now I want to deduct the bad loan from our taxes. I am using Turbo Tax and I want to know where to put it, how to word it and what supporting documents I need in case of an audit. Right now I have it under miscellaneous expenses.Please not, that even with this loan as an expense, my DH has about $20,000 income after all expenses are taken out (home office, etc).Any advice would be appreciated.Beth
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar<