nonbusiness bad debt?

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  • joeljj
    Junior Member
    • Feb 2008
    • 8

    #1

    nonbusiness bad debt?

    Client paid $26,000 for cabinets for his new home that he never received. Supplier/craftsman filed bankruptcy. Client has made repeated efforts to collect but looks like he will get nothing. Would this satisfy the creditor-debtor relationship test and therefore be deductible as a bad debt on Sch. D?
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