Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is a nonbusiness bad debt?

bad debt nonbusiness
0
Posted

What is a nonbusiness bad debt?

0 CommentsAdd a Comment

1 Answer

0

A. A nonbusiness bad debt is a bad debt related to an activity in which you do not materially participate. For example, a full-time Doctor loans a friend money for a restaurant and the restaurant fails. Nonbusiness bad debts are treated as short-term capital losses for tax purposes.

0 CommentsAdd a Comment

Related Questions

What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.

Experts123