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Post by tiredturkey on Aug 8, 2011 14:56:08 GMT -5
Is there any possible tax benefit for a person who co-signed on a relative's student loans and must now pay them because the individual defaulted? The amount is upwards of $50,000.
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Aug 8, 2011 15:40:16 GMT -5
nope....
unless that person exhausts all opportunities to collect from the original borrower....
and then, and only then, this will be treated as a non business bad debt (another words short term capital loss)
to be treated as exhausting all opportunities to collect, you may need to initiate a court proceeding, get a judgment, have the sheriff go collect, etc... sending a "friendly" letter won't cut it..
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