DIY Products

DIY Products

Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

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JYF
Trusted Pioneer
Posts: 8
Registered: ‎01-07-2018
Accepted Solution

how EXACTLY do i enter non business bad debt into the software

I need to get info from a non business bad debt from a loan that is worthless into form 8949. I tried reading other answers from other years software. None seem to work for me.  I don't see a "non business bad debt" option anywhere. Do i just open the FORM 8949? Maybe I am just stupid, but I need exact step by step directions on how to get the info there! I already read the IRS publication and I know that the loan I guaranteed can be a deduction as a non-business bad debt. That much I know. I just don't know in the interview part how to get there and I did NOT get a 1099-B or 1099-S if that makes a difference. Please help? THANKS

Associate (Pioneer)
Posts: 12
Registered: ‎08-19-2014

Re: how EXACTLY do i enter non business bad debt into the software

[ Edited ]

Hi JYF -

 

Here is how you'll enter that nonbusiness bad debt into our online program. Proceed to the Income section, then select Sales and Transfers. From there, choose 1099-S Sale of other real estate, collectibles, and other investment property (it's okay you don't have a 1099-S or other type of 1099). On the next screen, enter the name and of the debtor and bad debt (for instance, John Smith bad debt). Enter the amount of the debt as the cost or other basis. After that, the program will walk you through a few more screens and you'll be good to go. The bad debt will show up as a short term capital loss.

 

I hope this solves your problem.

 

Thanks and have a great day.

 

Andy

JYF
Trusted Pioneer
Posts: 8
Registered: ‎01-07-2018

Re: how EXACTLY do i enter non business bad debt into the software

thank you so much..i was reading where you have to attach an explanation...any idea how to do that?

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Associate (Pioneer)
Posts: 12
Registered: ‎08-19-2014

Re: how EXACTLY do i enter non business bad debt into the software

Good morning - On the screen that says 'tell us about your nonbusiness bad debt," you'll need to enter the information requested on that page. Specifically, you'll need to enter the name of the person/business that owes you the debt and your relationship to them (friend, relative, etc.), the amount of the debt and a brief description, the date the debt became due, what steps you've taken to collect the debt and how you've determined the debt has become worthless (i.e., it is not collectible and won't be collected at any point in the future). This will form the statement that is required and the program will include it with your return when you file.

 

Please let me know if you have any further questions.

 

Thanks,
Andy

JYF
Trusted Pioneer
Posts: 8
Registered: ‎01-07-2018

Re: how EXACTLY do i enter non business bad debt into the software

Well, I still don't have it right then Smiley Sad I went to the screen and entered the name of the bad debt, then the next blocks to fill were date acquired, cost or basis, (which i filled in the amount), date sold, sales price, accrued market discount, disallowed wash sale loss, special type (and here is where I was thinking there would be a drop down box for "bad debt" but there isn't. Just: E-sale expense or option premium discount, GO-expired option you granted, X-expired option you bought, N-Nominee, Q-executable gain on sale of qualified small business stock, Z-worthless stock, L-Other disallowed loss, O-other adjustment. Then after that is block for adjustment and then "this is a collectible" box How can i let it know it is a bad debt....is there something in the "whole form"?? I usually get things pretty quick but this one is  beating me LOL Thanks for your help BTW

Associate (Pioneer)
Posts: 12
Registered: ‎08-19-2014

Re: how EXACTLY do i enter non business bad debt into the software

Ok. It sounds like you're in the wrong section. Go to the Income section, click 'yes' you need to add additional income, and scroll down to Sales and Transfers. Do not click on the section for Investments. After clicking on Sales and Transfers, visit the topic for 1099-S Sale of other real estate, collectibles and other investment property. Click Add Sale, and follow my original instructions. There is the pulldown on this page for nonbusiness bad debts and it's very clear from there on.

 

After doing this, make sure you delete the entries you made in the Investments section.

 

Thanks and have a great day

 

Andy

JYF
Trusted Pioneer
Posts: 8
Registered: ‎01-07-2018

Re: how EXACTLY do i enter non business bad debt into the software

I am sure I'm in the correct section.  I wish I could show you a picture of what my screen shows me.  I have no choice of bad debt in the boxes. Do I have a different version of software than you are speaking about. Any way to get a picture to you? I wasn't sure if I could attach image to this message but that isn't working out either. Thanks for hanging in there...and don't give up.

JYF
Trusted Pioneer
Posts: 8
Registered: ‎01-07-2018

Re: how EXACTLY do i enter non business bad debt into the software

i am doing a live chat with an expert????? they are telling me something that is way off....to put in it "other income"...uh...no...i am that smart...so please help me...they can't LOL

 

JYF
Trusted Pioneer
Posts: 8
Registered: ‎01-07-2018

Re: how EXACTLY do i enter non business bad debt into the software

i have the desktop version not the online version is there a difference?

Associate (Pioneer)
Posts: 12
Registered: ‎08-19-2014

Re: how EXACTLY do i enter non business bad debt into the software

Good afternoon - Can you confirm if you're in the online product or the downloadable or boxed software. I think that may be the disconnect.

 

Thanks,

Andy