Will I get bad debt deduction on my tax return?

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Will I get bad debt deduction on my tax return?

allan

Posted on: 22nd Nov, 2006 12:56 am

I own a stock which unfortunately became worthless last year. Am I eligible for bad debt deduction on my tax return?

Thanks in advance

Total Reply : 2

Hi Dennis,

Welcome to MortgageFit Forums,

I think you will get some deduction when you file your tax return.

Thanks,

Allan

allan

Posted on: 22nd Nov, 2006 01:01 am

Hi,

Allan is right. If you own some securities which includes stocks and if they have become totally worthless, then you are eligible for deduction for loss and not for bad debt.

You can report worthless securities on form 1040 schedule D. You need to write "Worthless" in the applicable column of schedule D

Please feel free to ask if you have any more doubts.

Thanks,
Jerry

jerry

Posted on: 22nd Nov, 2006 01:40 am

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