Non-Business Loan

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • skhyatt
    Senior Member
    • Feb 2006
    • 295

    #1

    Non-Business Loan

    My client loaned her Son approx 60K back in 2002 and is now asking me if she can write it off as a bad debt as she knows she will never collect on it. In reading TTB, it does talk about writing off personal bad debts and how to go about it. What else do I need to know on this. I am still researching this. Any feedback very much appreciated.
  • Bees Knees
    Senior Member
    • May 2005
    • 5456

    #2
    One issue could be IRS saying the debt is being forgiven as a gift to the son. Parents will do that.

    She might want to get a court judgment to prove it is a bad debt, although I’m not saying it would be required.

    Comment

    Working...