Tax Time Question
Now that it's coming up tax time (again) I've got a question that is something new. Last year DH & I used an accountant for the first time in years, due to my Mother's passing and with the estate work I felt we needed professional advise for that and carried it over into our personal taxes with some of the inheritance. This year I may try to go back to doing our taxes again with the handy-dandy internet programs and save us the $450 since basically our income is not alot and we do not have alot of "stuff". But - we received the accountant's yearly questionnaire and one of the questions was "Does anyone owe you any money which has become uncollectable?" Well - yes.We sold some item's almost 2 years ago to a "friend" with a legitamite bill of sale ($3500) and he has yet to pay us a dime. He said he would make payments but never has even though we have contacted him many times. I just sent a letter to our lawyer. Do we think we will ever see any of this money - no. My question - is it really tax deductible? I know gambling losses are from casinos but this was not something that I would have considered.