Show Having Tax By GERALD E. DETERS Last a friend of mine borrowed from a bank to open up a small shoe He didn't have enough collateral and so I endorsed the shoe store didn't my Friend became and I was required to pay off the note at the Can I claim this loss on my tax From the information it appears that you have a business bad debt of Code Section of the Internal Revenue Code allows a business bad debt to a person who was required to discharge his obligation as a or of a non-corporate There two both or which must be met in order to qualify a person for such a The proceeds of the loan must have been used in the borrower's trade or At the time of the payment by the the borrower's obligation must be If both of the conditions are your payment of your friend's obligation at the bank will qualify as a deduction in the taxable year in which the payment is You should make very sure that your friend is really you will not be a deduction of any |