How do I write off a loan to somebody that cannot repay it to my business? (T2 form)?

[Tina7]

I made a loan from the company to a friend. They are no longer able to repay the loan.  How do I write it off for the company?

[william_newfeld · Accepted solution]

Hello,

I believe this would have to be reflected as bad debt inside of your accounting software and not done through the tax software.  If its been properly handled in the accounting software when entering the report information into the TurboTax Business Incorporated software the information should be correct.