Am holder of a 12 yr. Promissory note. After 7 yrs the business closed its doors. Am still owed $200K. How do I claim 200K as a loss on my Fed taxes? What Fed forms? Thanks

Publication 550, 551 and Form 1040, part D. I would consult a professional for something like this.

The use of a tax professional is VERY good advice.A bad debt can be claimed as a short-term capital loss on Form 8949 and Schedule D.There are added reporting requirements in making such a claim, which is why using a tax professional is recommended.Chapter 14 of IRS Pub 17 has guidance as to how to clalim the loss.