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    Kevin xom's Avatar
    Kevin xom Posts: 1, Reputation: 1
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    #1

    Nov 2, 2014, 02:22 PM
    Ask Accounting Question for Free
    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
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #2

    Nov 2, 2014, 06:21 PM
    Publication 550, 551 and Form 1040, part D. I would consult a professional for something like this.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Nov 3, 2014, 03:09 AM
    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.

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