I loaned 93000.00 dollars to a friend now he refuses to pay it back and told me not to file it as a loss?

Question

do i send him a 1099 and if he does not file .will he get in trouble

Answer 1

Would like to have a friend like you. You can deduct the loss as a bad debt on your tax return and send him a 1099c, copy to irs.

Answer 2

No, a 1099 is when you pay someone for work...not a loan.  I assume you have signed documents about how this transaction was to be handled.  If you do, see a lawyer and take him to court.  If not, your screwed.

Answer 3

Wow, I will be your Friend! :)

Answer 4

Publication 550.  Bad debt.

1.  Show you actually had a loan.  Not a gift.

2.  Show that you lent him after-tax dollars.

3.  Show that you have tried to collect the money (suing is nice).

4.  Then put it on schedule D, line 1 and attach the info.

The IRS may or may not pursue him for not reporting the income fromt he cancelled debt.  Unless you are a bank or credit lender, you do NOT issue a 1099-C.

Answer 5

Do you have anything in writing that he owes you this money?  If you do, take it to a lawyer.  The amount is way too high for small claims court.

Answer 6

You need a different type of friend.