A client told me that she saw a commercial about a tax relief fund for those who know someone who owes them money and they know they won't get it back they can write off up to $3,000. I've never heard of this, nor can find any information as such. Has anyone heard of this?
Thanks.
That's nothing new; that sounds like a non-business Bad Debt.
https://www.irs.gov/publications/p550#en_US_2020_publink100010564
https://www.irs.gov/taxtopics/tc453
https://www.law.cornell.edu/uscode/text/26/166
$3000 is the amount of capital losses one can take per year.
So if you invested money that you won't ever get back, that could be a capital loss that you could deduct up to $3000 per year until its used up.
Its not new nor does it have anything to do with Biden.
"nor can find any information as such"
https://blog.taxact.com/tax-deductions-non-business-bad-debts/
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