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or could you claim the friend as a "dependent"?
;0
Nah. Not unless he's got a non-profit number. And no, that's not his bank account number. ;0
no... but you can claim it as a loss/expense ... and send him a 1099... he got income he didn't pay taxes on I assume...
might check with your cpa... but when someone skips out owe'n me rent... i send them a 1099 ... i figure if they profitted they should pay taxes on it...
i knew a guy who talked visa into take'n 5k on a 25k bill and call'n it even... they reported the other 20k to the IRS as income on his part...
again check with a cpa...
p
Definitely not charitable.
It might be deductable as a bad debt loss. I am not sure, but since this was not part of business I think that it is a under sch A misc expense which has some limitations.
FWIW charitable deducts can only be taken for reconized groups. Basically that is churches, government entities (such as a school or museum operated by some part of the government), or a 501c3 organization.
Nothing ever given to benifit a specific person is deductable. For example a fund setup for a family that was burned out is not a charitable deduction.
William the Geezer, the sequel to Billy the Kid - Shoe
Break his legs.
I'm bringing sexy back.
http://www.youtube.com/watch?v=pXSWjVzdaF8&NR=1
One at a time or both at the same event?
Always thought you need to charge a legal interest rate on the loan since the IRS can tax you on it wheter you're collecting interest or not.
He ain't gonna pay it back. Just break em both.
I'm bringing sexy back.
http://www.youtube.com/watch?v=pXSWjVzdaF8&NR=1
its a gurl
Break her legs then. What's gender got to do with it?
I'm bringing sexy back.
http://www.youtube.com/watch?v=pXSWjVzdaF8&NR=1
Thats too bad man. Ummm, got any more to lend.........buddy? :-) DanT
Did you recieve any , um,,ah,,,Services? Cuz that is not deductable like lunches are.Spheramid Enterprises Architectural Woodworks
Repairs, Remodeling, Restorations
They kill Prophets, for Profits.
This the one who wanted to talk you into investing in a hot dog stand with her and quit your job to stir the mustard?
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
yes,bbq
Sorry, she wanted you stirring the hot sauce, not the mustard.
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
You can claim a loss but not as a charity unless he is an approved charitable organization like a church or a 501 non-profit corporation..As a bad loan write off, you need to have it documented - an actual copy of a loan agreement that he signed when you forked over the cash, stating what payment schedule and what interest rate and all that good stuff. You don't have to be in the business of lending money. Even a family member can deduct a loss if they can prove that it was a loan rather than a gift.
Now for my shot at humour, if you have any winnings from gambling, you could offset them with this gambling loss.
Welcome to the
Taunton University of Knowledge FHB Campus at Breaktime.
where ...
Excellence is its own reward!
I don't know if the rules remain the same but if you have a signed note you could take the loss off your taxes. I did with my mother-in-law and it stood up to an IRS audit..
There are a # of ways to write that off with no signed agreement, but charitable as it was charity is not one of them. Talk to your cpa they'll know just what to do.
Might try writing it off as an "Education Expense"
cant be nice no more, its all gimmee, gimmee and gimmee and if you dont you get cralled for not be chairty. that a fancy word meaning, to give away somebody else money
"that a fancy word meaning, to give away somebody else money"
After they take their cut.
I'm bringing sexy back.
http://www.youtube.com/watch?v=pXSWjVzdaF8&NR=1
You see it as a loan.
She see's it as payment for services?
Every car, truck and tractor in America should run on natural gas- it's the future.
She sees it as payment for the "cosmetic" surgery on her legs.
I'm bringing sexy back.
http://www.youtube.com/watch?v=8yIqwyR1ays
Lots of razor blades?
Every car, truck and tractor in America should run on natural gas- it's the future.
Just a baseball bat.
I'm bringing sexy back.
http://www.youtube.com/watch?v=8yIqwyR1ays
That is deductible under the 'Tools' category, right?
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
I don't see why not.
I'm bringing sexy back.
http://www.youtube.com/watch?v=8yIqwyR1ays
BB:
I have a CPA whose professional services I've been using since circa 1985. In 2007, I had similar situation as what you posted about.
I dug out her email response to me from 2007, telling me basic info re writing off a bad debt.
No idea if this will be helpful to you (haven't read all the other posts in this thread) and since this info is over 1 year old now, not sure what may have changed. But here is what she wrote me back, in 2007 re bad loans:
"Did you get these buddies to sign notes that spelled out the repayment terms? In order to get the bad debt deduction (up to $3,000/year), you have to be able to show that:
To claim the loss, we’ll attach a statement to the tax return for the year in which the loans become worthless that contains:
If you cannot document the above, the IRS looks at it as though you made a gift to the debtor (nondeductible) or the item is not truly a bad debt yet."
Good luck!
Clara
"Is it February yet?"
You have to jump through several hoops to claim it as a bad debt. First you have to have a proper loan document, showing a loan WITH INTEREST, and then you have to have pretty solid proof that you're unable to collect the debt. You can't simply "forgive" the debt and then claim it.