ANSWERS: 4
  • My guess is that if it is many years ago, then it is too late, if its like 2 to 3 years maybe you can, I am not sure
  • If someone owes you money that you cannot collect, you may have a bad debt. For a discussion of what constitutes a valid debt, refer to IRS Publication 550, Investment Income and Expenses, and Publication 535, Business Expense. To deduct a bad debt, you must have previously included the amount in your income or loaned out your cash. If you are a cash basis taxpayer, as most individuals are, you may not take a bad debt deduction for income you expected to receive but did not because the amount was never included in your income. For a bad debt, you must show that there was an intention at the time of the transaction to make a loan and not a gift.
  • If you made the loan with NO intention of getting the money back, this is NOT considered a loan, but a gift. Sorry, no deduction!
  • why don't you sue those?

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