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I lent my cousin some money in April 01 ($5K) but...

  • Thread starter Thread starter jinuj
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jinuj

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... he has avoided returning the amout so far. I don't expect him to give the money back anymore, he has turned himself into a pretty bad shape (financially) by now. Can this amount be considered as 'bad debt' when I file tax returns for 2001?
Thank you for the response.
 


L

loku

Guest
Bad debts relating to personal loans are not deductible. If it was a business loan, you could deduct it from the gross profit of your business that made the loan. In this case, as business loan from the company would be a loan that has a business purpose to the company.
 
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