In an effort to get my house (financially speaking) in order, I would like your input as to how I can use the following uncollectible notes as a loss. These are signed, original note documents:

I was out of town for a few days end of last week and still digging from email. Anyway bad debts are short-term capital losses. There is no issue as to writing them off. The value of the write-off and the timing are an issue.

Short-term capital losses can be used against capital gains and you can deduct an additional $3,000 a year. I don’t recall that you have a lot of investments would create capital gains. Therefore you will write them all off in one year but you only get to use $3,000 of that write-off. The timing is the other issue. The write-off should start in the year the notes become uncollectible. I have never seen the IRS do it but they could say you should have written the notes off in an earlier year and that would mean you would have lost some of the deduction. I wouldn’t be overly concerned about this timing issue just want to make sure that you are aware in the off chance it comes up.

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About taxdude8422

Basically I am just a tax nerd, have been all my life. However I have found the more open you are to opportunities the better off you will be in this world. That makes my what is know as an open networker on Linkedin, I will connect with anyone. I am not an expert on Linkedin by any means but one day when I was asking someone to connect I mentioned that I had just been refilled on invites. My new connect asked how I did that. I used that same line for the next month and got asked the same question four times. I started thinking there was a lot of little things it took my sometime to learn. Through this blog I plan to share some of those "Linked Secrets"
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