Tax impact of a court judgement

[Michael G.]

I have a court judgement against a former tenant for unpaid rent and damages. How do I include this in my tax return if at all? I assume I can only claim for the assessed damages portion, as I have yet to complete full replacement of damaged items. I seem to recall reading that that even if I cannot collect the debt, which is very likely, that at some time in the future when I forgive the un-collectible debt, it will be recorded as an income against her by the IRS. I have been unable to find my notes on this and wondered if anyone else may be able to clarify the tax implications.