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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I paid a builder for some work and he left the state. I sued

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I paid a builder for some work and he left the state. I sued him in small claims court and he did not show. The Judge awarded me around $2700, which I will never collect. Can I write this loss off on my taxes?

Megan C :

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Megan C :

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Megan C :

This amount is a bad debt. Provided that this was for personal work done, this would be a non business bad debt

Megan C :

You can write off the amount of the debt on schedule D of your tax return

Megan C :

You can read more about this on tax topic 453 http://www.irs.gov/taxtopics/tc453.html

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Customer: replied 2 years ago.

I looked at the Schedule D and I cannot find where I can write this loss off. Can you please tell me what line numbers? Thank you.