Questions & Answers

Loan or Gift

To deduct a nonbusiness bad debt, you need to be able to show that you intended to give a loan and not a gift. If you gave money to someone with the agreement that it didn't necessarily need to be repaid, that would be considered a gift.

If you gave money to one of your children to help them pay for their basic needs, this is not considered a loan and can't be deducted.

Let's Get Started

© 2002-2019 FreeTaxUSA, a TaxHawk, Inc. owned and operated website - Terms of Use | Privacy Statement