Article Date:
November 2008

Word Count:



Bad Loan

What documentation do I need to write off a loan as bad? In connection with the sale of one of my rental properties, I gave a second mortgage to someone who now is unable to pay. The first mortgage is substantial and most likely will go unsatisfied. The second mortgage loan I made is considerable. (J.H., Las Vegas, Nevada)


There are two types of bad debts: business and nonbusiness.


The nonbusiness bad debt is deductible in ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee