I am filing pro se -- within the next day or so. I owe my dad a lot of money (a business loan), which he has forgiven (called it an early inheritance). My accountant advised me to list him as a creditor, so that he could get the tax write-off of a bad business loan. If I don't list him as a creditor, can he still claim a business loss??? ... he doesn't know I'm filing for BK, and if I have to let him know, I will, but if he doesn't have to know... that would be better for all of us involved. hmm... BUT, I don't want him to lose his tax advantage because it's substantial. any ideas?
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If you had a formal, written loan, he can probably claim the tax write off regardless. If he has nothing to show that he loaned you money, then I doubt he can benefit from it regardless of whether you list it or not.
I could list that I owed my mother in law $100,000 but if she had nothing to back it up, she can't claim a loss. I'm not saying your loan isn't legit-but I know that favors among family are not usually well documented.Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.
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