Loan to a friend that wasn't repaid
Varies
Can You Write Off Loan to a Friend That Wasn't Repaid?
Short answer: Possibly, as a short-term capital loss, if it was a real loan with a written agreement that became totally uncollectible.
Gifts disguised as loans don't qualify.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
BW-B22-00184
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Loan to a friend that wasn't repaid
Varies
Individuals / Personal Taxes
Other Expenses
Personal Tax Deductions
Possibly, as a short-term capital loss, if it was a real loan with a written agreement that became totally uncollectible.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Possibly, as a short-term capital loss, if it was a real loan with a written agreement that became totally uncollectible. Gifts disguised as loans don't qualify.
Category
- Personal Tax Deductions
personal deduction
search demand 2026
losses
investments