Veneia Michelle
Level 2
‎07-26-2021 06:24 PM

A client told me that she saw a commercial about a tax relief fund for those who know someone who owes them money and they know they won't get it back they can write off up to $3,000.  I've never heard of this, nor can find any information as such.  Has anyone heard of this?  

Thanks.

0 Cheers
TaxGuyBill
Level 15
‎07-26-2021 06:48 PM

That's nothing new; that sounds like a non-business Bad Debt.

https://www.irs.gov/publications/p550#en_US_2020_publink100010564

https://www.irs.gov/taxtopics/tc453

https://www.law.cornell.edu/uscode/text/26/166

 

Just-Lisa-Now-
Level 15
Level 15
‎07-26-2021 06:49 PM

$3000 is the amount of capital losses one can take per year.

So if you invested money that you won't ever get back, that could be a capital loss that you could deduct up to $3000 per year until its used up.

Its not new nor does it have anything to do with Biden.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
qbteachmt
Level 15
‎07-26-2021 10:02 PM

"nor can find any information as such"

https://blog.taxact.com/tax-deductions-non-business-bad-debts/

 

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