capital lost ?

[jiri]

In year 2000 I loaned about $10,000 to a friend and he paid back about $2,000.

In 2001 we ended up in court and my judgement was about $4,000 from which I collected about $2,000.

In 2002 I expect to collect rest of my judgement - about $2,000.

If and how this (can) affect my tax return ?

 

[vrzirn]

Balance of loan is a loss and not tax deductible unless it was a business loan. Lucky you get most of it back. Rest paid for "education"/