Where do I enter business or non-business bad debt on an individual return?
Business Bad Debt:
Business bad debts can be entered as an other expense on the related schedule that reports that business income.
If filing Schedule C, go to the C screen and enter the business-related bad debt amount under Part II – Other expenses, line 27a.
If filing Schedule F, go to the F screen and enter the business-related bad debt amount under Part II – Expenses, line 32 Other expenses.
For more information about business bad debts, see :
Non-business Bad Debt:
Non-business bad debts are reported as short-term capital losses on Form 8949, Sales and Other Dispositions of Capital Assets.
For more information on non-business bad debts, see Publication 550 Investment Income and Expenses (Including Capital Gains and Losses).
An attachment for each bad debt reported is required. For information on attaching information to a return, see Related Links.