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Updated about 7 years ago on . Most recent reply

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317
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72
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Paul Winka
  • Rental Property Investor
  • St Louis, MO
72
Votes |
317
Posts

Hypothetical question about losses from bad borrower.

Paul Winka
  • Rental Property Investor
  • St Louis, MO
Posted

If, hypothetically, I lend $400K unsecured and my borrower disappears off the grid, I will have a huge loss. Is that a loss I would be able to spread over several years for tax purposes?  

It's doubtful this will happen, but if the sky falls someday in this what-if scenario, it's good to know what would happen.  

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